What does a Renewable Term Policy allow?

A Renewable Term Policy allows for the renewal of the policy at the end of the term without requiring evidence of insurability. This means that when the term expires, the policyholder has the option to renew the coverage for another term without having to provide medical information or undergo a medical examination. This feature is particularly beneficial for individuals who may develop health issues over time, as it enables them to retain their life insurance coverage without the risk of being denied based on their health status.

In some insurance plans, renewal may come at a higher premium possibly due to age or changes in health status, but the fundamental aspect that distinguishes renewable term policies is the assured renewal without the need for reassessment of health conditions. This feature provides peace of mind and long-term coverage assurance to policyholders.