Final answer:
Gregory purchased a renewable term insurance policy, which allows him to renew his coverage annually without additional health screenings or proof of insurability. The premium may increase upon renewal, setting it apart from other types of term insurance policies.
Step-by-step explanation:
Gregory purchased a renewable term insurance policy. This type of insurance policy allows the policyholder to extend their coverage for an additional time period without the need to undergo a medical exam or provide new evidence of insurability. It's designed to offer flexibility and security for those who might experience health issues that could make it difficult or more expensive to obtain coverage later on.
With a renewable term policy, the premium may increase upon renewal to reflect the policyholder's older age, but the ability to renew without a medical exam is a significant benefit. This differs from a level term policy, where the premiums and coverage amount stay the same throughout the term, a convertible term policy, which allows the policyholder to convert to a permanent policy without proof of insurability, and a decreasing term policy, where the coverage amount decreases over time, typically aligned with the reduction of a debt, like a mortgage.