Which statement about renewable term is true?

Which statement about renewable term is true?

• A. It cannot be renewed after initial term.
• B. It requires medical underwriting to renew.
• C. It can be renewed without evidence of insurability.
• D. It automatically converts to whole life.

Answer: (C)

Renewable term life insurance is designed so you can extend coverage after the initial term without having to prove you’re insurable again. This means at renewal you don’t undergo new medical underwriting, though the premium usually increases because you’re older. That’s why the statement about renewing without evidence of insurability is the true one. The other ideas don’t fit: renewable term can be renewed, so it isn’t correct to say it can’t be; renewals generally don’t require medical underwriting, so needing underwriting at renewal is incorrect; and automatic conversion to whole life isn’t guaranteed across all policies—many offer a conversion option, but it isn’t automatic.

Renewable term life insurance is designed so you can extend coverage after the initial term without having to prove you’re insurable again. This means at renewal you don’t undergo new medical underwriting, though the premium usually increases because you’re older. That’s why the statement about renewing without evidence of insurability is the true one. The other ideas don’t fit: renewable term can be renewed, so it isn’t correct to say it can’t be; renewals generally don’t require medical underwriting, so needing underwriting at renewal is incorrect; and automatic conversion to whole life isn’t guaranteed across all policies—many offer a conversion option, but it isn’t automatic.