Jan. 16, 2007

My husband and I each have a $250,000 five-year term life insurance policy. Does that mean at the end of five years we have to get a physical before we can renew our policies? In general, should you enter into the longest possible term policy because you could have a problem renewing the policy due to an illness?

Michelle, New Jersey

Dear Michelle,

Many term life insurance policies give the policyholder an option to renew the policy automatically without a medical exam. Whether you have this option depends entirely on the language in your policy, which I suggest you read for a definitive answer.

The most common reason people enter into a longer term life insurance policy (usually 10, 20, or 30 years) is because their death would affect the financial situation of dependents or loved ones. For instance, if you and your husband have a mortgage, or are thinking of buying a house, you might buy term insurance for each of you for the length of the mortgage. If you have children, you might buy term insurance to cover their college education or other expenses in case you or your husband should die; that way, a single parent is not left to bear all the expense of raising a child.

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