What is a defining feature of a reentry term policy?

A reentry term policy is characterized by the feature that allows for two different premium levels based on the insured's insurability at the time of renewal. Initially, the policyholder pays a lower premium for a specified term, typically a set number of years. Upon renewal, the policyholder has the opportunity to requalify based on their current health status, which can result in a lower premium if they are still in good health.

This structure incentivizes policyholders to maintain their health and seek renewal at a more favorable premium. It contrasts with standard term policies where the premium is fixed and does not consider any changes in the insured's health upon renewal. Understanding this aspect of reentry term policies is critical for distinguishing them from other types of life insurance products that may not offer this feature.