A renewable Term Life Insurance policy allows the policy owner the right to renew the policy

• A. without producing proof of insurability
• B. with medical underwriting required
• C. only at the insurer's discretion
• D. the policy cannot be renewed

Answer: (D)

At the heart of this is understanding renewal rights for term life policies. A true renewable term feature generally lets you extend coverage for another term, usually without proving insurability, though the premium often increases with age.

In the scenario given, the correct choice says the policy cannot be renewed. That means this particular term policy is nonrenewable: once the initial term ends, there’s no option to extend the coverage under the same contract. To maintain coverage, the insured would typically need to convert to permanent life (if the policy provides a conversion feature) or purchase a new policy.

So, even though some term policies are designed to be renewed, this policy has no renewal right, which is why renewing isn’t available. The options about underwriting or requiring insurer discretion don’t apply here since renewal isn’t permitted at all.