My
husband and I bought a term life insurance policy when he was 40 years old.
It's a 20 year term life policy and he
is now 53. When it expires when he is 60 how likely is the life insurance company to renew the policy?
We
have a young daughter who will just be graduating from high school at that time
and the need to provide life insurance protection will still be there if something happens to him.
If
you bought a "guaranteed renewable" rider on the term life insurance policy, they will
automatically renew the policy for another 10 year term (usually) at a much higher premium.
If he's still healthy, he could
probably get better rates on a 5 year term life policy, which should be long enough
to get your daughter alll the way grown up on on her own.
Or, you could consider buying a new 10 or 15 year term life insurance plan now to replace your existing policy if you can find more affordable rates. But never cancel an existing policy until you have the new life insurance plan in place, and you have paid the life insurance premium.
Also, when replacing an existing policy your 2 year contestability period starts over, which means the life insurance company can contest any claim and not pay of there is material misrepresentation on the application for coverage.
