Annual Renewable Term Life Insurance

What is Annual Renewable Term (ART) life insurance?

Annual renewable term life insurance is a life insurance policy which lasts for a one-year term.  This is, in fact, the fashion after which all life insurance was originally administered.  After the one year term, you can renew your policy, but the premium will increase to reflect your increased age.

Renewable term policies with durations longer than one year can also be found.  They work on the same basis as ART life insurance, save only that renewals (and premium increases) take place every several years instead of every year.

Renewable term policies usually only permit renewal up to a certain age in the insured.