Annually Renewable Term renews with what condition?

Annually Renewable Term renews with what condition?

• A. It has a level premium for the entire term
• B. It requires evidence of insurability at renewal
• C. It automatically renews without EOI, and premiums rise with attained age
• D. It cannot be renewed

Answer: (C)

Annually Renewable Term is designed so you can renew coverage every year without proving insurability, but the price goes up as you get older. Each renewal reflects the higher attained age, so premiums increase rather than staying level for the entire term. That combination—automatic annual renewal with no evidence of insurability at renewal, plus premiums rising with age—is exactly what makes ART distinct. The other descriptions don’t fit ART: a level premium for the entire term describes level term, not ART; requiring evidence of insurability at renewal contradicts the “no EOI” aspect of ART; and the idea that it cannot be renewed is the opposite of its purpose, since ART is specifically designed to renew annually.

Annually Renewable Term is designed so you can renew coverage every year without proving insurability, but the price goes up as you get older. Each renewal reflects the higher attained age, so premiums increase rather than staying level for the entire term. That combination—automatic annual renewal with no evidence of insurability at renewal, plus premiums rising with age—is exactly what makes ART distinct.

The other descriptions don’t fit ART: a level premium for the entire term describes level term, not ART; requiring evidence of insurability at renewal contradicts the “no EOI” aspect of ART; and the idea that it cannot be renewed is the opposite of its purpose, since ART is specifically designed to renew annually.