What is renewable term insurance?

Renewable term insurance is defined as a term insurance policy that allows the policyholder to renew the coverage after it expires without the need to provide evidence of insurability. This means that upon renewal, the insurer does not require the insured to undergo medical underwriting, which is typical for new policies. This feature is particularly advantageous for individuals who may experience health changes during the initial term or who would find it difficult to secure a new policy.

The ability to renew without providing proof of continued insurability provides significant peace of mind, as it ensures ongoing coverage even if the insured's health status has deteriorated. This type of insurance addresses the potential risk individuals face as they age or if they encounter unforeseen health issues, making it a desirable option for many consumers.

Other options describe different types of insurance policies or characteristics that do not align with the concept of renewable term insurance. For instance, permanent insurance typically includes lifelong coverage and is not limited to a specified term, while stating that a policy cannot be renewed once expired directly contradicts the fundamental nature of renewable term insurance. Additionally, renewable term insurance is specifically geared towards life coverage rather than being a general type of insurance focused solely on life, as implied in some of the other options.