Pennsylvania Life and Health Insurance Exam Practice Question
A renewable term life insurance policy allows the policyowner the right to renew the policy:
Correct Answer: A
Rationale: A renewable term life insurance policy allows the policyowner to renew without evidence of insurability, meaning they do not need to provide medical information at renewal. This is beneficial as it ensures coverage even if the policyholder's health has deteriorated.
Option B is incorrect because requiring evidence of insurability contradicts the nature of a renewable policy. Option C is misleading; renewal typically does not increase benefits but maintains the same coverage amount. Option D is also inaccurate, as premiums usually increase upon renewal based on the insured's age and risk, not decrease.
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