Which Term Life insurance policy cannot be renewed?

• A. Decreasing
• B. Level Term
• C. Renewable Term
• D. Increasing

Answer: (A)

Renewability in term life insurance refers to whether you can keep coverage after the initial term ends without going through new underwriting. A decreasing term policy is designed to provide a gradually shrinking amount of protection to match a declining obligation, such as paying off a mortgage. Because the coverage amount is tied to a specific time period and declines over that period, there’s typically no renewal option for this type of policy. If you want ongoing protection after the term, you’d usually need to buy a new policy or convert to permanent coverage, and the cost would reflect your age and health at that time. Other term forms are built with renewal or conversion features (renewable term) or maintain level or increasing benefits for a term, which is why they aren’t the right choice for a policy that cannot be renewed.