What is a disadvantage of term life insurance as one ages?

Term life insurance is designed to provide coverage for a specified period, typically ranging from 10 to 30 years. As individuals age, they may encounter several factors related to term life insurance. One notable disadvantage is that premiums typically increase with each renewal.

When a policyholder reaches the end of their term, they can choose to renew their policy. However, since the insured is older at the time of renewal, insurers assess the higher risk associated with older age, which often results in increased premiums. This can lead to potentially higher costs for the same coverage amount, making it less financially viable over time, especially for those who may already be facing increased healthcare costs as they age.

Understanding this dynamic is essential for individuals considering term life insurance, especially as they plan for long-term financial security and coverage adequacy in their later years.