What does "renewable" mean regarding term life insurance?

What does "renewable" mean regarding term life insurance?

• A. The policyholder can adjust premium amounts annually
• B. The policyholder can renew their term insurance without medical evaluation
• C. The insurance company is required to continue coverage
• D. The policyholder can switch to whole life insurance easily

Answer: (B)

In the context of term life insurance, "renewable" refers specifically to the ability for the policyholder to renew their term insurance coverage without the need for a new medical evaluation. This means that even if the policyholder's health status has changed or declined since the original policy was taken out, they have the right to continue their insurance coverage without undergoing additional underwriting processes. This feature is attractive to policyholders who may otherwise face challenges obtaining new coverage due to health issues at the time of renewal. This renewal provision typically occurs at the end of the initial term, allowing the policyholder to extend coverage for another term, often at a higher premium that reflects the increased age of the insured. This aspect provides significant flexibility and peace of mind, knowing that they can maintain coverage without having to re-qualify based on health conditions.

In the context of term life insurance, "renewable" refers specifically to the ability for the policyholder to renew their term insurance coverage without the need for a new medical evaluation. This means that even if the policyholder's health status has changed or declined since the original policy was taken out, they have the right to continue their insurance coverage without undergoing additional underwriting processes. This feature is attractive to policyholders who may otherwise face challenges obtaining new coverage due to health issues at the time of renewal.

This renewal provision typically occurs at the end of the initial term, allowing the policyholder to extend coverage for another term, often at a higher premium that reflects the increased age of the insured. This aspect provides significant flexibility and peace of mind, knowing that they can maintain coverage without having to re-qualify based on health conditions.