Question 1 of 19
What does a renewable term provision protect, and what does it not guarantee about the renewal premium?
Strong Interview Answer
A renewable term provision generally lets the insured continue eligible term coverage at the stated renewal dates without new evidence of insurability. It protects the right to renew, not the original premium; renewal premiums can increase according to the contract, commonly with attained age or the applicable renewal schedule.
What to Listen For
- renewal without new evidence of insurability
- premium may increase
- attained-age or contractual renewal schedule
- renewability is not a level-premium guarantee
Caution
Do not treat 'renewable' as meaning the original premium is locked for life.