Listen to a Business English Dialogue About Renewable term life insurance
Addison: Hi Maya, have you heard about renewable term life insurance in business and finance?
Maya: No, what is it?
Addison: Renewable term life insurance is a type of life insurance that provides coverage for a specific period, typically 10, 20, or 30 years, and can be renewed for additional terms without the need for a medical exam.
Maya: Oh, I see. So, it’s like a policy that can be extended if needed?
Addison: Exactly. It allows policyholders to continue their coverage beyond the initial term, providing flexibility to adapt to changing life circumstances.
Maya: Are there any advantages to renewable term life insurance?
Addison: Yes, one advantage is that it offers affordable coverage with the option to extend without requalifying for coverage, which can be beneficial for individuals with changing health or financial situations.
Maya: That sounds useful. How does the renewal process work for renewable term life insurance?
Addison: The renewal process typically involves paying a higher premium based on the policyholder’s age at the time of renewal, but without the need for a new medical exam or underwriting.
Maya: Thanks for explaining, Addison. Renewable term life insurance seems like a flexible option for individuals seeking affordable coverage.
Addison: No problem, Maya. It’s a popular choice for individuals looking to protect their loved ones while maintaining flexibility in their insurance coverage.