Are you considering term insurance? If so, you are about to take an important step that can help provide your loved ones with significant financial benefits.
But what type of life insurance should you choose? You may be wondering if an annual renewable life insurance policy is right for you – and you may also be wondering how renewable life insurance policies can be compared to other types of life insurance policies, including permanent life insurance policies and universal life insurance policies.
Haven Life offers life insurance with 10, 15, 20, 25 and 30 years. This means that when you take out a Haven Life insurance policy, your premium rates remain constant throughout your term ̵
Annual renewable life insurance also offers premium periods – but since you renew the insurance annually, your premium rates may increase each year as you get older.
Here's what you need to know about renewable term life insurance, including how to decide if annual renewable life insurance is the best choice for you and your loved ones.
What is renewable life insurance?
Renewable life insurance is a type of life insurance that is designed to be renewed regularly. An annual renewable life insurance can, for example, be renewed every year.
When you apply for life insurance for a renewable period, you pay level premiums throughout your life insurance period. This means that your monthly premium payments remain constant until it is time to renew your insurance. If you choose to renew a renewable insurance, your premium rates may increase with each renewal. This means that if you take out an annual renewable life insurance policy, your premium payments can increase every year.
Most life insurance policies can be renewed at the end of your term, regardless of whether your term policy applies for a single year, 10 years, 20 years or even 30 years. That said, when you hear people discuss "renewable life insurance", they may be referring to short-term insurance policies that are intended to be renewed over and over again – not a 25-year life insurance policy designed to provide coverage for a quarter of a century.
How much does renewable life insurance cost?
Like almost all life insurance policies, your renewable life insurance premium depends on a number of factors, including your gender, age and health – not to mention the amount of insurance coverage you claim.
The big difference between premium rates for renewable life insurance and other types of premium insurance is that renewable insurance premiums will most likely increase each time you renew your insurance. If you have an annual renewable life insurance policy, expect to start with low monthly premium payments — and then expect these payments to increase, year after year, as you continue to renew your insurance.
A 30-year life insurance policy, on the other hand, offers the same level of premiums month after month, year after year, until your 30-year life insurance expires. Because your premium rate remains constant during the life of the insurance, policyholders with forward insurance can stop saving a lot of money by choosing a 30-year insurance with a premium period of 30 years instead of renewing an annual life insurance for 30 years in a row and see your premiums increase with each renewal. For example, if you are a 25-year-old woman in excellent health, a 30-year, $ 250,000 policy would only cost $ 15 a month — less than 50 cents a day. (And last time we checked, peace of mind is pretty invaluable.)
What are the benefits of renewable life insurance?
One of the biggest benefits of an annual renewable life insurance policy is the ability to carry life insurance for just as long as you need it. Instead of taking out a 15, 20, 25 or 30-year life insurance policy in advance, you can take out a one-year insurance policy and renew your insurance every year until you no longer need life insurance.
Let's say you and your partner have just made a down payment on your first home. A life insurance death benefit can help your partner continue to pay at home in the worst case scenario – but does that mean you have to take out a 15-year life insurance policy to cover your 15-year mortgage? Not necessarily. People who plan to pay down their mortgage as soon as possible can consider a life insurance plan for renewable time, especially if they have no other debts, no other relatives and no other reasons for needing life insurance after their home has been paid in full. If you pay off your mortgage for 5 years instead of 15, you have just saved yourself 10 years of life insurance premiums for coverage that you may not need in the end.
What are the disadvantages of renewable life insurance?
Renewable life insurance can seem like an affordable life insurance option when you are young and healthy – especially if you envisage taking out an annual renewable life insurance policy for a short period of time and canceling the insurance before the monthly premium payments become too expensive.
But what happens if your life plans change? Your insurance needs may also change – and you may wish you had taken out a life insurance policy that offers a longer premium period.
Let's go back to the example where you and your partner buy your first home. Taking out a renewable life insurance policy so that you can have life insurance when you pay off your mortgage is an option – but what if it takes longer to pay off your mortgage than you expected? What happens if you and your partner decide to start a family, and you suddenly realize that it will take at least 20 years of life insurance to protect your children until they no longer need your financial support?
In that case, you may wish you had taken out a 20-year life insurance policy from the beginning. This way, you could benefit from 20 years of premium payments, instead of agreeing to an annual renewable insurance policy where your premiums increase year after year. life insurance?
In most cases, futures insurance is cheaper than full insurance – which, as the name suggests, is designed to cover you for the rest of your life. Why is full life insurance more expensive? Not only does an entire life policy provide longer coverage, but permanent life insurance policies such as full life insurance or universal life insurance often come with a cash value component that builds over time and the policyholder can borrow against.
These extra benefits may sound attractive, but they will cost – not only in monthly premium rates, but also in the risk that a policyholder may withdraw too much of the insurance's cash value, resulting in a smaller death benefit for beneficiaries and loved ones.
In many cases, a life insurance policy that offers a premium period for your entire coverage needs is the most cost-effective way to provide for the people you care about the most.
Does Haven Life offer renewable life insurance?
Haven Life does not currently offer annual renewable life insurance. When you apply for reasonable life insurance via Haven Life, you have the opportunity to take out life insurance for 10, 15, 20, 25 or 30 years. This not only gives you the benefit of low premium payments throughout your insurance, but also the peace of mind that comes with knowing exactly what your monthly life insurance premium will be – not just right now, but also 10, 15, 20, 25 or even 30 years from now.
Want to know what kind of life insurance premiums you can expect? Use Haven Life's free online quote tool to estimate your monthly premium rates – or take a look at the chart below to see what other Haven Life policyholders are paying for futures insurance.
Quotes for Term Insurance
|Age  Gender||Term Length||Face Amount||Premium|
|35-Year-Old||Female||20 Years||$ 500,000||$ 17.50 / month|
|35-year-old||Male||20 years||$ 500,000||$ 20.72 / month|
|35-year-old||Female||20 years||] $ 1,000,000||$ 29.03 / month|
|35-year-old||Male||20 years||$ 1,000,000||$ 34.08 / month|
|45-year-old||Female||20 years||$ 500,000||$ 36.45 / mo|
|45-year-old||Male||20 years||$ 500,000||$ 42.49 / month  45-year-old||Female||20 years||$ 1,000,000  $ 66.57 / month|
|45-year-old||Male||20 years||$ 1,000,000  $ 80.00 / month|
Estimation based on pricing for qualified Haven Term seekers with excellent health. The price differences vary depending on age, health status, coverage amount and term length. These prices do not reflect the prices for applicants in CA, DE, FL, ND, NY and SD.
Who Should Consider Renewable Life Insurance?
If you only need life insurance for a very short period of time, annual renewable life insurance can be an affordable option. Be aware that many insurance companies, including Haven Life, do not offer annual renewable life insurance policies – which means that if you are looking for a short-term life insurance policy, you may want to consider a 10-year life insurance policy instead.
Some people are looking for annual renewable life insurance policies to provide coverage during a period of unemployment, provided they will switch back to an employer-sponsored life insurance plan when they find a new job. Although it is always an option, it is worth noting that the group life insurance plans offered by many employers may not provide the sufficient coverage you need to cover funeral expenses, pay off old debts and support your loved ones. Adding affordable life insurance as additional coverage is a way to give your beneficiaries a greater death benefit and the opportunity to maintain better financial stability in the worst case.
Before you consider renewable life insurance, ask yourself if the insurance is likely to meet your insurance needs – and if you will be happy with your premium rates not only right now, but also after several renewals.