What is an Annually Renewable Term Policy?

Annually renewable term life insurance is a type of life insurance plan that provides you with life insurance protection for a period of one year.

With annually renewable term life you may choose to renew your life insurance policy for another year when your term expires.

The premium you pay will increase each year at renewal if you choose to continue your life insurance coverage.

This type of life insurance is usually the cheapest for a period of 2 or 3 years, but if you need life insurance for a longer period of time, you may be better off choosing to purchase a 5 or 10 year level term life insurance policy and canceling the coverage when you no longer need it.

With level term life insurance your premiums remain the same each year, they do not increase during the term of your policy. You may choose to purchase level term life for a term of 5, 10, 15, 20 or 30 years, depending on what lengths of term are available from the insurance company. Learn more about an annually renewable term life insurance policy.