Which statement about a renewable term policy is correct?

A renewable term policy allows the policyholder to extend the coverage for another term without undergoing a new medical examination. This renewal option is typically granted at the discretion of the insured, meaning it is up to them to decide whether or not to renew the policy when the term expires. This feature provides flexibility and assurance to the policyholder, as they can continue their coverage for an additional period even if their health status changes during the initial term.

The first choice about fixed premiums for life is inaccurate, as renewable term policies usually have premiums that may increase with each renewal. The third choice concerning the accumulation of cash value is also not applicable, as term policies, including renewable ones, do not build cash value like permanent life insurance. Lastly, the statement about the inability to convert to whole life does not correctly apply to all renewable term policies, as many term policies do offer a conversion option to whole life under certain conditions. Thus, the emphasis on the insured's option to renew aligns perfectly with the nature of renewable term insurance.