Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
Term policies are known by the period of time when the premium is guaranteed to remain level. For example, “20 year level term.” That doesn’t always mean that the policy expires in 20 years (although it might.) If it doesn’t expire the renewal premium for every year after the guaranteed level term period increases and in later years the premium becomes very expensive.
That is a great question! The better question though, is do you really want to? Term policies become very expensive very quickly when you renew (or "extend" as you asked) them. I'm talking in multiples more expensive per month. Unless there is a really good reason why you couldn't get another term or a whole life policy to replace the one you have, I wouldn't advise renewing/extending the one you have. These policies are just not designed well for consumers who need more time. I hope that helps, thanks for asking!
This depends on what type of policy you have. For example, there are certain polices known as Term UL policies that many companies have sold that have an extension option for the policy that will allow you to extend the term period and pay a level premium. The premiums are generally more expensive for the extension but not like a traditional term policy with increasing premiums. Check with your insurance company on the options you have.
Another option that carriers make available is a term conversion. This allows you to convert part or all of your term insurance to a permanent policy without having to go through underwriting. These options vary from company to company but for some clients it can be a great option.
Most term life insurance policies cannot be extended, although some policies do explicitly offer that feature. The premium is higher when a policy is extended, and that means the premium is usually MUCH higher. If you are unsure if you will need your policy past a certain point, it is usually more economical to purchase a longer term upfront, than it is to get to the end of your term policy and have to figure out how to add a few more years to it.
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Another option that carriers make available is a term conversion. This allows you to convert part or all of your term insurance to a permanent policy without having to go through underwriting. These options vary from company to company but for some clients it can be a great option.