Life insurance policies protect your family from your financial debts after you die. The life insurance company pays a death benefit to a beneficiary that you name during the initial application process. However, depending on your policy, you may need to renew the policy to make sure that your beneficiary receives the death benefit proceeds. Only term life insurance expires after a set period of time during your life. Make sure you understand renew this type of insurance.
Instructions
1. Gather all of your life insurance policy information. Your life insurance policy illustration, included with your policy, shows the rate at which you may renew your policy. For level term life insurance, your policy premiums will increase dramatically over the level term rate. For annual renewable term life insurance, your policy premiums will likely only increase by a small amount.
2. Determine how you want to renew your policy. You may convert your annual renewable term policy to a level term policy. This means that your policy will renew after a set number of years instead of every year. With a level term policy, you may choose to allow the policy to renew automatically at annual renewable term rates or you may apply for another term. In both cases, an additional health exam is necessary when applying for another term. Annual renewable policies that renew every year or level term policies that renew at annual rates do not require additional health exams or other underwriting.
3. Apply for the new rate or pay your premiums for the new policy. If you are applying for a level term policy when your existing term policy is ready to renew, then you must fill out another life insurance application and schedule an appointment for a health examination. The health examination consists of getting blood and urine samples, as well as getting your blood pressure taken and answering a series of health questions asked by a licensed nurse. If you are renewing your policy into an annual renewable policy, you simply need to make the required premium payment. The insurer should automatically send you a bill when the policy renews. However, with level term policies, you should call to verify this with the insurer.
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