Which two features are attractive in term insurance?

Term insurance is designed primarily for temporary coverage, offering specific features that enhance its attractiveness to policyholders. The inclusion of convertibility and renewability differentiates term insurance from other types of life insurance, making it particularly appealing.

Convertibility allows policyholders to transition from a term policy to a permanent policy without needing to undergo additional medical underwriting. This feature is valuable because it provides flexibility – if a person’s health changes during the term period, they still have the option to secure permanent coverage, potentially ensuring their insurability regardless of changes in their health status.

Renewability is another essential feature that lets policyholders extend their term policy at the end of the original term, typically without providing additional evidence of insurability. This means that even if they have developed health issues, they can continue their coverage without interruption, albeit potentially at a higher premium due to their advanced age.

These features address common concerns surrounding temporary insurance coverage, particularly regarding long-term planning and health uncertainties. They enhance the basic protective nature of term insurance, making it more appealing to those who may later want to convert their policy into a more permanent form or simply ensure ongoing coverage as their needs evolve.