Which type of insurance provides coverage for specific risks and is typically renewably based on the insured's age?

The correct answer is term life insurance, as it is designed to provide coverage for a specified period, typically chosen by the policyholder, and is reliant on the insured's age at the time of renewal. As a person ages, the risk associated with insuring them increases, which usually results in higher premiums upon renewal.

Term life insurance offers a straightforward approach, providing a death benefit if the insured passes away within the policy term. If the term expires and the policyholder wishes to renew, the rates are recalculated based on their current age and health status, which reflects the increasing risk associated with older age.

This is distinct from whole life, universal life, and variable life insurance policies, which provide permanent coverage and accumulate cash value, without the need for renewal based on age. These types of insurance generally have more complex structures for premium payments and benefits, and the premiums do not necessarily increase with age, making them different from term life insurance.