A policyowner has annual renewable term insurance. What happens to the premium at each renewal?

A policyowner has annual renewable term

Multiple choice — select the best answer

AIt stays level for life
BIt decreases as the insured ages
CIt is recalculated only every five years
DIt increases because it is based on the insured's attained age

✓ Correct answer: D. It increases because it is based on the insured's attained age Annual renewable term renews each year without evidence of insurability, but the premium rises because it is recalculated on the insured's higher attained age.

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Topic: Life Insurance Basics & Types

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A policyowner has annual renewable term insurance. What happens to the premium at each renewal?

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