Which statements are true about term life insurance?

• A. The term length is set and the policy cannot be renewed.
• B. Term life insurance sets the term as one year and may renew every year without evidence of insurability.
• C. The death benefit increases automatically at each renewal.
• D. Premiums always decrease over time.

Answer: (B)

Term life insurance can be purchased as an annual renewable term option, which provides one-year coverage that can be renewed each year. When you renew, you typically don’t have to show evidence of insurability, but the premium rises to reflect your older age. This description fits because it highlights the one-year term and the ability to renew annually without underwriting. Other aspects of term insurance aren’t universal: many term policies offer longer fixed terms or other renewal/conversion options, the death benefit isn’t automatically increased at each renewal, and premiums don’t automatically decrease over time (they often stay level for the term or increase at renewal).