What could lead to the increase in premium costs when renewing term insurance?

The increase in premium costs when renewing term insurance is primarily influenced by the age of the policyholder. As individuals age, they typically face higher health risks, which insurers account for when determining premium rates. Life insurance premiums are based on the likelihood of the insurer having to pay out a death benefit, and this risk increases as the insured gets older.

When term insurance policies are renewed, the insurer reassesses the risk based on the current age of the policyholder. Thus, the premiums may rise significantly compared to the earlier premium rates established when the policyholder was younger. This natural progression reflects the underwriting principles of the insurance industry, where age is one of the most significant factors impacting premiums.

Other options, while related to the insurance process, do not directly cause an increase in premiums at renewal in the same straightforward manner that age does. For example, changing policies might involve different products or terms, while investment returns typically impact the insurer's profitability rather than individual premiums. The overall health of the insurer influences operational costs and stability but is not directly linked to individual policy premium increases upon renewal.