Renewing Your Life Insurance Policy: Great Perk or Unnecessary Expense?

,

PolicyMe content follows strict guidelines for editorial accuracy and integrity. Learn more about our editorial guidelines.

Scroll down for full content ↓

Get a free instant life insurance quote

Coverage for
Myself
Me & My Partner
Your Date of Birth
(DD/MM/YYYY)
Partner's Date of Birth
(DD/MM/YYYY)
Required field
Your Gender
Click to learn more about the author.
Different genders have different rates of developing illnesses, which is why insurers take it into account with pricing policies.We understand that you might not define your identity as simply "Male" or "Female" so we're working to add more options.We appreciate your flexibility.
Male
Female
Partner's Gender
Male
Female
Required field
Do you smoke?
Click to learn more about the author.
You should select “Yes” if you’ve used any nicotine products in the last 12 months. Nicotine products include:

Cigarette
E-Cigarettes
Pipes
Chewing tobacco
Vaporizers
Nicotine gum
Nicotine patches, or
13 or more cigars.

Otherwise, select “No”. Note: Cannabis products are NOT considered to be nicotine or tobacco products.
Yes
No
Does your partner smoke?
Yes
No
Required field
Required field
Get My Quote
No credit card or email required
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
In This Article

‎Key takeaways:

  • Life insurance renewals are a feature of most term life insurance policies in Canada
  • If you’re in good health, you’re better off applying for a new policy at the end of your term 
  • Renewing your policy makes sense if your health has changed and you’re no longer eligible for a new policy

What is a life insurance renewal?

Life insurance renewal is an option for those with a term life insurance policy. This feature allows the policyholder to renew their policy when it’s about to expire so that they’re not left without coverage at the end of their term.

Guaranteed renewability has pretty much become standard on all term life insurance products. It allows you to renew your policy at a pre-specified price when it’s about to expire. 

And you won’t need to go through extra underwriting or show proof of health, which makes this a great option for those who:

  • Have had a change in health.
  • Might otherwise not be eligible for a completely new policy.

Still shopping for a policy? PolicyMe has some of the most simple and affordable critical illness insurance coverage. We also offer automatic yearly renewals at the end of your term, so you’re never caught without protection. Life insurance for seniors over 80 in Canada may also be of interest.

Is renewing your life insurance a good idea?

Renewing your life insurance policy can be a good idea if your health condition has changed and you still need coverage by the time your term ends.

But while having the option to renew can be comforting, think carefully when the time comes about whether or not you’ll actually need to make use of it.

Since you don’t have to go through extra risk assessment (underwriting) or do a medical exam, renewal premiums can be prohibitively expensive. They can clock in at a staggering five to 20 times the amount of the initial premium.

That's because in return for not asking for an updated picture of your health, the insurance provider takes a “risk” by insuring you, resulting in higher premiums.

Despite the price hike from your initial policy, renewing your life insurance might still be worth it for you.

So if you don’t experience a change in health but still need coverage by the time your term ends, you’re probably better off applying for a new policy. 

Your rates will be more costly because you’re older, but clearing the medical exam should keep your costs well below the rate you would pay for a renewal.

How to decide if you need to renew your life insurance policy

What should you do as you get closer to your term insurance expiry date? Here’s a simple four step process to follow for deciding if you should renew your policy:

1. Know when your policy is set to expire

Keep an eye on the end date of your initial term life insurance policy. Because renewals with most life insurance providers are automatic, you’ll want to make sure ahead of time that you mark this date on your calendar. 

A few months before your initial term ends, tackle the next steps below!

2. Understand how your needs have changed

Routinely reassess your life insurance needs to understand how much coverage you need and how long you need it for. 

When it comes time to renew, your life has likely changed and your financial situation with it. For example, if you’re at the end of your 20-year term:

  • Your kids may now be financial independent. 
  • Your mortgage balance has probably decreased.
  • Your income may have changed.

Chances are slim you will need the same coverage you had earlier, if you still need it at all.

3. Apply for a new policy if you're in good health and still need coverage

If you’d like to keep some coverage but don’t need quite as much as you used to, apply for a new policy with a smaller coverage amount.

Since you’ve taken a look at how your needs have changed, you’ll have a better idea of if you still need coverage.

If you’re still in good health, applying for a new policy will mean your loved ones will stay protected at a fraction of the cost of policy renewal.

4. Cancel your policy renewal if you don’t need it

Make sure to cancel your policy before renewal kicks in if you no longer need protection.

Have you ever missed the cancellation date for a one month “free” trial that automatically rolls into a paid plan? Then you know how important this step is. 

If you forget to cancel, the rates of your renewed policy might give you sticker shock on your next bank statement.

If you do need the coverage and have decided that renewing your policy is the right step for you, then kick back, relax, and let it renew – no action needed!

Next steps: life insurance renewal

Additionally, if you're concerned about rising premiums or are looking for more affordable coverage, it may be a good idea to shop around and compare quotes from Canada's best life insurance providers. By doing so, you can find life insurance prices that work best for you.


Considering the needs of the needs of each individual within your household, a family life insurance policy may be ideal to ensure everyone's financially secure in case of a tragedy.

At PolicyMe, we know things can change (for better or for worse). That’s why we offer guaranteed yearly renewals on our term life insurance policies, so you can stay protected for as long as you’ll need it. 

We’ll also let you know when you’re nearing the end of your term, so you can opt out easily before your policy renews. No surprises here!


Shop around life insurance quotes online through PolcyMe to get coverage tat keeps your family safe.

Rewing your life insurance policy can be a option to secure financial protection for your loved ones, there are even options like no medical exam life insurance that can make the renewal process easier and more accessible.

If you're not looking to renew, you may want to get couples life insurance. Find the best life insurance for seniors over 60 in Canada on PolicyMe. Use calculator for insurance to find out how much insurance you need.

Laura McKay

COO & Co-Founder
About the Author

What to read next