K is looking to purchase Renewable Term insurance. Which of these types of Term insurance may be renewable?
Increasing
Decreasing
Adjustable
Level

Answers

Answer 1

"Level Term insurance may be renewable. The correct option is D.

What is the insurance about?

Renewable Term insurance allows the policyholder to renew the coverage at the end of the term without having to provide evidence of insurability. This means that the policyholder can keep the same amount of coverage without having to undergo a medical exam or answer health questions. However, the premium may increase at each renewal to reflect the policyholder's age and mortality risk.

Increasing, Decreasing, and Adjustable Term insurance is not renewable. Increasing Term insurance has a level premium but the face amount increases over time, usually to keep up with inflation or other financial needs. Decreasing Term insurance has a level premium but the face amount decreases over time, usually to match a decreasing debt or mortgage.

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