Which statement about renewable Term Life policies is true?

• A. They require evidence of insurability at each renewal
• B. They can be renewed without proof of insurability
• C. They convert automatically to whole life
• D. They must be renewed every year with same premium

Answer: (B)

Renewable term life is designed so you can extend coverage after the initial term without having to prove you’re still insurable. The key point is that at each renewal you can continue the policy without new underwriting, though the premium increases as you age. This lets you keep protection in place if your health has changed or you still need coverage, albeit at a higher cost.

The other ideas don’t fit this feature: some plans aren’t renewed without underwriting, and renewal decisions don’t lock the premium at the same level forever. Automatic conversion to whole life isn’t guaranteed in every policy, and while many renewable terms offer a conversion option, it isn’t an automatic change.