Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
A renewable term insurance policy allows the insured to:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
A renewable term policy gives the insured the right to renew coverage for successive term periods without proving insurability — regardless of health changes. Each renewal is priced at the insured's attained age, so premiums rise with each term, but coverage cannot be denied for health reasons. This is valuable for insurability protection.
Why the other options are wrong
- B) Conversion (turning term into permanent) is a separate privilege; renewal simply continues term coverage at the attained age.
- C) Renewal continues the same face amount; it does not guarantee the right to increase the death benefit.
- D) Premiums must still be paid at renewal; renewable means renewable, not free.
Memory hook
Renewable = the door stays open no matter how sick you get, but the toll (premium) rises with each trip around the age wheel.