In term life policies, which provision allows renewal at expiration without evidence of insurability and is based on the insured's current age?

In term life policies, which provision allows renewal at expiration without evidence of insurability and is based on the insured's current age?

• A. Annual renewable term
• B. Renewable provision
• C. Convertible provision
• D. Term life insurance

Answer: (B)

Renewal provision is the feature that lets a term life policy be renewed at the end of its term without evidence of insurability, with the new premium based on the insured’s current age. This means you can continue coverage even if health has changed, but the cost rises as you are older at renewal. The idea centers on underwriting not being required at renewal and rates reflecting attained age, which is why this provision best fits the scenario. The convertible provision, by contrast, is about converting to a permanent policy without new medical proof, and term life insurance describes the product type rather than this specific renewal option. Some term policies may offer an annual renewable term variation, but the general renewal provision is the mechanism that allows renewal at expiration based on current age.

Renewal provision is the feature that lets a term life policy be renewed at the end of its term without evidence of insurability, with the new premium based on the insured’s current age. This means you can continue coverage even if health has changed, but the cost rises as you are older at renewal. The idea centers on underwriting not being required at renewal and rates reflecting attained age, which is why this provision best fits the scenario. The convertible provision, by contrast, is about converting to a permanent policy without new medical proof, and term life insurance describes the product type rather than this specific renewal option. Some term policies may offer an annual renewable term variation, but the general renewal provision is the mechanism that allows renewal at expiration based on current age.