What is a key feature of a Renewable Term policy?

A key feature of a Renewable Term policy is that it allows renewal without evidence of insurability. This means that when the policy reaches its expiration date, the policyholder has the right to renew the policy for another term without needing to provide additional medical information or undergo a health screening. This characteristic is particularly valuable for individuals who may develop health issues over time, as it ensures they can continue their coverage regardless of changes in their health status.

The ability to renew without evidence of insurability provides peace of mind and financial security, as it mitigates the risk of losing life insurance coverage due to health changes. This feature is especially important in term life insurance, where the coverage duration is limited.

While the other options relate to features found in some insurance policies, they do not specifically describe the defining characteristic of a Renewable Term policy. For instance, premiums remaining the same for the lifetime of the policy pertains more to level term life insurance rather than the renewability aspect. Guaranteeing a new policy upon renewal is not a standard promise across all Renewable Term policies, as it primarily focuses on the ability to renew. Lastly, benefits paid as a lump sum upon death is a general characteristic of life insurance policies but does not specifically pertain to the renewable feature of