Annual Renewable Term Life Insurance

While annual renewable term life insurance looks like a string of words some sales guy put together to confuse people, it is actually a very specific type of term life insurance.  Maybe you came here looking to get quotes for term life insurance, and if you did, then you can fill out the form on the side of this page.  Otherwise keep reading to learn more about yearly renewable term life insurance (to learn more about other types of life insurance click here).

What is Annual Renewable Term Life Insurance

When you break down the words it is easy to see that annual renewable term life insurance is a form of term life insurance that expires each year but can be renewed.  This is way it is often referred to as yearly renewable term life insurance.  While renewing each years may sound intimidating most of these policies have an automatic renewal with no new health exam or interview.  Overall it is a seamless process that is very easy once you have a policy.

Advantages of Annual Renewable Term Life Insurance

The biggest advantage of this form of annual renewable term life insurance is price.  Because the policy renews every year the insurance company gets to do a quick reevaluation based off of your new age.  This means they can afford to offer you a lower price at the beginning of the policy.  The policy itself is a term policy so other than this one feature it acts exactly like traditional term life insurance.

Disadvantages of Yearly Renewable Term Life Insurance

The only disadvantage is actually the same as the only advantage and that is price.  Even though the annual renewable term life insurance policy starts out cheaper as you age the premiums will get more expensive.  Each year you will see a small increase in the premium because you are a year older and the insurance companies that getting older leads to death.  With a traditional term life policy you pay the same amount throughout the entire term.  The premium does not change no matter what illness you get or how old you become.  While an annual renewable policy will cost you less in the short term, in the long term you will pay significantly more than with a traditional policy if you keep renewing each year. is dedicated to helping you find the best term life insurance policy for your needs.  Get free quotes by filling out the form on the side of this page and our team is always there to answer questions and serve you in any way we can.

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