The most basic form of life insurance is term insurance. Term insurance provides a specific amount of life insurance for a certain period of time. The added options allowing for renewal or conversion offer the policy owner flexibility in continuing the insurance to provide for other purposes, even if the life insured’s health deteriorates and she/ he becomes uninsurable.

The “Term” under a term insurance policy is typically fairly short, most often one, five or 10 years. This does not mean, however, that the policy itself necessarily terminates at the end of a given term. This depends on whether or not the policy is guaranteed to be renewable.

A non-renewable term policy is issued for the duration of the current term and then it terminates. For example, a non-renewable five-year term policy will provide coverage for five years, after which time the rights and obligations of both the insurer and the insured end. If the insured wishes to extend his or her coverage beyond the term period, a new policy will have to be applied on a stand along basis.

In the case of renewable term policies (for example five years) the insured has a guaranteed right (but not an obligation) to extend (renew) the policy for another like term without having to provide medical evidence of insurability.

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