In renewable term insurance, what option does the policy owner have?

In renewable term insurance, the policy owner has the option to renew their coverage based on a higher premium once the initial term expires. This feature allows policyholders to extend their insurance protection without needing to provide evidence of insurability, such as undergoing a medical exam or answering health questions. As a result, even if the insured person's health deteriorates over the term, they can still renew their policy, albeit typically at a higher premium, which reflects the increased risk associated with their age or health status at the time of renewal.

This characteristic underscores the flexibility and accessibility of renewable term insurance, making it a valuable choice for individuals who seek ongoing life insurance protection without facing the hurdles of re-qualification. The potential increase in premium is standard as it compensates the insurer for the additional risk taken on as the insured ages.