Is Universal Life Insurance Renewable?
Universal life insurance is a type of permanent life insurance that provides flexibility in premium payments, death benefits, and cash value accumulation. One of the key features that distinguishes universal life insurance from term life insurance is its renewability options.
Unlike term policies which often have fixed renewal periods, universal life insurance does not require renewal in the traditional sense. Once you are approved for a universal life policy, it covers you for your entire life as long as premiums are paid. This means that you do not need to worry about reapplying or facing new health assessments as you would with term insurance at the end of a term period.
However, it's essential to understand that while universal life insurance is designed to be renewable in a sense, the cost of the policy can vary based on your age, health, and the insurer’s rates as time progresses. If you stop paying premiums, the coverage may lapse, and you would need to reactivate or purchase a new policy, which could be subject to underwriting guidelines.
In summary, universal life insurance is not renewable in the same way as term life insurance. Instead, it offers lifelong coverage that you can maintain by paying premiums, making it a flexible option for long-term financial planning.