Annual Renewable Term
Life Insurance

Inexpensive term life insurance

Annual renewable term life insurance, as its name suggests is one of several types of term life.

There are really 3 main types of term offered and they are Increasing, Decreasing and Level term life insurance. Their names indicate how the death benefit or face amount of your policy change while the policy is in force.

Annual renewable term life insurance can be considered as being level due to the death benefit remaining level.

Important points to keep in mind:

• ART is term life insurance and therefore has no cash value
• ART is temporary coverage and will eventually expire like all other term policies
• Your premium will increase when you renew each year

Side note

To explain term life insurance briefly, it is known to provide temporary coverage and is recognized to provide the most affordable life insurance. When you purchase term, however, you only have coverage for a specific time period, for example 10 years. So it is very likely that you may outlive your policy.

It’s usually suitable for young families, or people who have a decreasing debt such as a mortgage.

If you’re confused at all about term then you can get a general idea of how if works on “What is term life insurance,” here.

Moving on now….. ;-)

When you buy annual renewable term, your death benefit actually remains the same or (level) while your policy is active.

Your policy is guaranteed to be renewed each year for the time period specified in your contract, however, your premium will usually increase every year as well.

Why? Statistically the older you get the possibility of death increases.

Other term policies will lock you in with a set premium for a certain term, for example 5, 10, 15 years up to no more than 30 years.

With annual renewable it’s really a 1 year policy with the option for you to renew it every year and you don’t have to keep taking health exams unless stated otherwise in your policy.

This is something you really need to go over with you advisor.

However, with all term insurance, there is a maximum age at which your policy cannot be renewed or converted, such as over the age of 65 or 75.

This will vary depending on the company you choose.

Annual Renewable Term Life Insurance to read about Term Vs Whole Life

Free Life Insurance Quote Homepage