After the initial period of guaranteed premiums, what will my term insurance cost?
Whole Life insurance policies typically have a level premium for life. However, term insurance policies typically only guarantee the premium for a limited number of years. Each renewable term policy has a contractually guaranteed maximum renewal premium which can be illustrated, and which is shown in the policy. This amount is the most you’ll have to pay to renew the coverage. Insurers also illustrate current renewal rates, which represent the expected future renewal rates, which are lower than the maximum renewal rates. These rates are not guaranteed, and can be higher or lower than expected, but never higher than the guaranteed maximum renewal premium. After the initial guarantee period ends, you can re-apply for new coverage and, if you qualify, you can begin a new period of guaranteed rates (in effect, a new policy), which will generally cost less than your current or maximum renewal rates. This process is referred to as ‘re-entering,’ or ‘re-entry.’ Since your future good health i
