Question 70

The policyowner is purchasing the right to renew the policy without showing proof of insurability.

Term Life Insurance that is renewable allows the policyowner to renew the policy without having to demonstrate proof of insurability, meaning they do not need to undergo medical underwriting again at the time of renewal.

A) with proof of insurability.

This option is incorrect because renewable term life insurance specifically allows the policyowner to renew the policy without needing to provide proof of insurability, which means they are not required to submit new health information or undergo a medical exam.

B) without an increase in premiums at renewal.

While this option might seem reasonable, it is not universally true for all renewable term policies. Premiums may increase based on the insured's age or other factors, so this statement does not accurately reflect the nature of renewable term life insurance.

C) for an unlimited number of ×.

This option is incorrect as it is vague and does not provide a clear understanding of the renewal process. Renewable term life insurance typically has specific terms and conditions regarding the number of times a policy can be renewed, which can vary by insurer.

D) without showing proof of insurability.

This option is correct because one of the primary benefits of renewable term life insurance is that the policyowner can renew their coverage without needing to provide any health information or proof of insurability, which simplifies the renewal process.

Conclusion

The correct answer, D, highlights the key benefit of renewable term life insurance, which is the ability to renew the policy without showing proof of insurability. This option is distinctly advantageous compared to the other choices, which either misinterpret the terms of renewal or fail to accurately describe the process involved.