What condition must be met for the re-entry option in term life insurance?

The re-entry option in term life insurance allows the policyholder to renew their coverage without undergoing a new underwriting process as long as certain conditions are met. Among these conditions, the requirement to pass a physical exam is typically a key component.

This requirement exists because, upon re-entry into the policy, the insurer needs to assess the current health status of the insured. Since time has passed since the original policy was issued, the insurer wants to ascertain any changes in health that could affect risk and premium rates.

In contrast, options like submitting a new application or providing years of medical records might not be standard for the re-entry process. While insurers may require updated information, the focus is primarily on the physical examination to streamline the renewal while ensuring that the insurer can manage its risk effectively. Additionally, reaching a certain age is generally not a condition for re-entry, as the primary concern revolves around health rather than age alone.