What is "renewable term insurance"?

Renewable term insurance is a specific type of term life insurance that provides the policyholder with the option to renew their coverage at the end of the policy term without the need to provide evidence of insurability. This feature is particularly beneficial because it allows individuals to maintain their life insurance coverage even if their health has declined since the original purchase of the policy.

The key advantage of renewable term insurance is the ability to secure coverage regardless of any changes to the policyholder's health status. This ensures that the insured person can continue to protect their beneficiaries financially without the concern that increased health risks would prevent them from renewing the policy.

In contrast, options that suggest proof of insurability is required would defeat the purpose of renewable term insurance, as that would impose restrictions on the ability to renew. Additionally, while it may terminate at the end of its term, the defining feature of renewable term insurance is specifically about the renewal ability without health underwriting, making that aspect the crucial point of differentiation.