What does a Renewable Term Policy imply regarding its coverage duration?

A Renewable Term Policy allows policyholders to renew their coverage at the end of the term without undergoing a new medical exam or proving insurability. This means that, unlike some other forms of life insurance, the policy can be renewed on an annual basis based on the current rates at the time of renewal. The premiums may increase each time the policy is renewed due to factors such as the policyholder's age or changes in the insurance market, but the guarantee to renew the policy is what distinguishes it.

The key aspect here is that the policy provides flexibility for the insured to maintain life insurance coverage as long as they can continue to pay the premiums. This can be particularly advantageous as the policyholder ages or if their health status changes, making it more difficult to obtain new coverage. Thus, the implication of this coverage duration reflects a commitment to ongoing protection while allowing for adjustments in pricing based on current underwriting standards.

In contrast, the other choices do not accurately depict the nature of a Renewable Term Policy. Coverage being fixed or terminating after a specific period does not align with the renewable feature, and not having a renewal process contradicts the very essence of a renewable policy.