Question

Gregory recently purchased a one-year term insurance policy. At the end of the year, he can purchase an identical policy without having to show proof of insurability. Why type of policy did he purchase?

Answer 1

Gregory purchased a term insurance policy with a guaranteed renewable feature, allowing him to renew the policy without proof of insurability.

Step-by-step explanation:

Gregory purchased a term insurance policy that allows him to renew the policy at the end of its term without providing proof of insurability. This type of term life insurance policy typically includes a guaranteed renewable feature. It means that the insured has the option to extend coverage for additional periods without having to take a medical exam or provide any other evidence of good health. These policies are designed to provide a payout to beneficiaries in the event of the policyholder's death within the covered term, helping to alleviate potential financial burdens.