What is one major advantage of renewable term insurance?

Renewable term insurance is designed to provide policyholders with the flexibility to renew their policy at the end of each term without needing to provide new evidence of insurability. This means that even if the insured’s health status has deteriorated or if they have developed a serious medical condition, they can still renew their policy and maintain coverage without the risk of being denied due to health issues. This feature makes renewable term insurance particularly appealing for individuals who want to ensure continued coverage regardless of changes in their health over time.

The other options present characteristics that are not associated with renewable term insurance. For instance, requiring a medical exam upon renewal would go against the primary advantage of this type of policy, which is its accessibility without additional underwriting. Additionally, renewable term insurance does not typically offer increasing benefits each year or provide a cash surrender value, as those features are more commonly found in whole life or permanent insurance policies. Thus, the ability to extend coverage without needing to demonstrate ongoing insurability stands out as a significant advantage of renewable term insurance.