Who has the option to renew a Renewable Term policy?

In the context of a Renewable Term policy, the option to renew is typically held by the insured. This gives the individual who owns the policy the ability to extend their coverage after the term period ends, usually without needing to undergo additional medical underwriting or assessment. The insured can take advantage of this option, allowing for continued life insurance protection even as their health status may change over time.

This provision is beneficial because it allows a policyholder to maintain coverage even if they might face difficulties obtaining a new policy due to changes in health or age. While the insurer has to honor the renewal option as stipulated in the policy, it is ultimately the insured who exercises that right to renew the coverage according to their needs and circumstances.

The beneficiary does not have the option to renew a policy since their role is to receive the benefits upon the death of the insured. The underwriter’s role is to assess the risk and determine the terms under which the policy will be issued, but they do not have the authority to renew the policy. Therefore, the insured's ability to renew is what makes it a unique feature of Renewable Term insurance.