W!SE Financial Literacy Certification Practice Test 2025 – Complete Exam Prep

Question: 1 / 400

When must a term life insurance policy be renewed?

If the premiums are increased

Once the term period expires

A term life insurance policy must be renewed once the term period expires because term life insurance is designed to provide coverage for a specified duration, such as 10, 20, or 30 years. When the initial term concludes, the policyholder typically has the option to renew the policy for another term, possibly at a higher premium. This renewal process is crucial for maintaining continuous coverage. The insured should be aware that if they choose not to renew the policy at the end of the term, the coverage will lapse, and they will no longer be insured. This understanding emphasizes the importance of tracking the term's length and the need for immediate action as it approaches expiration to ensure ongoing protection.

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Every five years

Only when the insured turns 50

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