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

At the end of a 10-year level term life policy that is guaranteed renewable and convertible, the insured has the option to renew the policy for another 10 years, but this renewal typically occurs at a higher premium rate. This characteristic is inherent to term life insurance, particularly as the insured ages. The guaranteed renewable aspect means that the insurer is obliged to renew the policy regardless of changes in the insured's health, but the premium adjustment reflects the increased risk associated with an older age.

The convertible feature allows the insured to convert the term policy into a permanent life insurance policy without the need to provide evidence of insurability, which provides additional flexibility. Nonetheless, it’s important to understand that renewing the term policy itself isn’t at the original premium rates, which is why the premium will be higher for the renewed policy. This renewal process emphasizes the nature of term life insurance, which typically does not maintain level premiums as the insured ages.