What happens at the end of a 10-year level term life policy that is guaranteed renewable?

At the end of a 10-year level term life policy that is guaranteed renewable, the insured may renew the policy at a higher premium rate. This feature allows the policyholder to continue their coverage without needing to provide evidence of insurability, which can be especially beneficial as they age or if their health status changes.

Typically, term life insurance policies have a level premium for a specified period, after which the insured can renew the policy. Upon renewal, the terms of the new premium will generally reflect the age of the insured at that time, which results in a higher premium compared to the original term. This is a standard practice in term life insurance, ensuring that coverage can continue even as the risk associated with the policyholder increases.

The other options do not align with how guaranteed renewable term life policies function. For instance, requiring the policyholder to purchase a new policy is not typical with a guaranteed renewal feature, as the primary benefit of such policies is the ability to renew without additional underwriting. While policies can have conversion options to whole life, this is not automatically the case unless explicitly provided in the policy terms.