What does "renewability" in term life insurance refer to?

In term life insurance, "renewability" specifically refers to the ability of the policyholder to extend the coverage period without undergoing additional medical underwriting. This feature is significant because it provides peace of mind, allowing individuals to continue their coverage even if their health status changes during the initial term. If a policy is renewable, the insured can renew the policy at the end of the term, typically at the same premium rate as when they first purchased the policy, regardless of any changes in their health.

This differentiates renewability from other aspects of term insurance, such as premium calculations based on age, which are not directly related to the renewal feature. Furthermore, the option to switch to a different provider is not inherently a characteristic of renewability; it involves a separate process of seeking new coverage. Lastly, while some policies may offer benefits that increase over time, this aspect is not tied to the definition of renewability in term life insurance. Thus, the correct focus on the extension of coverage aligns with the primary characteristic of renewability in term life insurance.