What is a common characteristic of term life insurance?

Term life insurance is designed to provide coverage for a specific period, known as the term, which can range from one year to several decades. One of its common characteristics is that it is typically renewable upon expiration. This means that once the initial term ends, the policyholder has the option to renew the policy for another term, often without needing to provide evidence of insurability, although the premium may increase based on the insured's age at the time of renewal.

This feature of renewability offers flexibility to policyholders, allowing them to extend their coverage as needed, especially if their circumstances change, such as needing additional coverage for dependents or debts. Unlike permanent life insurance which is designed to last for the lifetime of the policyholder and often includes a cash value component, term life insurance serves as a straightforward solution primarily focused on providing a death benefit for a specified duration.

In contrast to the other choices, term life insurance does not include cash value accumulation, as that is a key feature of permanent life policies. It also does not offer lifetime coverage; once the term ends, unless renewed, the coverage ceases. Lastly, term insurance is generally less expensive than permanent life insurance, making it accessible for individuals who may not need lifelong coverage or