What does a renewable term insurance policy allow upon expiration?

A renewable term insurance policy provides the policyholder with the ability to renew their coverage upon expiration, typically without needing to provide evidence of insurability. This means that the policyholder can maintain their life insurance coverage even as they age or if their health status changes. However, an important aspect of this renewal feature is that the premium may increase based on the policyholder’s age or changes in risk factors.

Choosing to renew the policy often means that the insurer assesses the premium for the next term, which may result in a higher premium due to the policyholder being older at the time of renewal or shifts in mortality risk. This characteristic of renewable term insurance makes it an appealing option for individuals who want the security of keeping their insurance coverage without going through the underwriting process again.

While options like reconversion to a previous policy, applying for a new policy, or cancellation without penalties might sound feasible as features, they do not capture the essence of what a renewable term policy specifically allows upon expiration—continuing the current policy with a revised premium structure based on assessment criteria.