Which of the following is true about term life insurance?

Term life insurance is designed to provide coverage for a specific period, typically ranging from one year to 30 years. One of the key features of many term life policies is that they can be renewed at the end of the term without requiring the policyholder to provide proof of insurability. This means that as long as the policyholder continues to pay the premiums, they can maintain their coverage, even if their health has declined since the original policy was issued. This feature offers peace of mind, particularly for individuals who may be concerned about their ability to qualify for insurance in the future.

In contrast, whole life insurance builds cash value over time and provides coverage for the insured's lifetime, which reflects a fundamental difference in how these products function. Whole life tends to be more expensive than term life due to the savings component that accumulates cash value and the lifetime coverage. As a result, the ability to renew term policies without proof of insurability is a distinct advantage that makes them a flexible option for those seeking temporary coverage.