The annual renewable term life insurance policy probably has more
aliases than any other life insurance policy.
It is also known as the yearly renewable term life insurance policy as well as the increasing premium term life insurance policy.
That does not mean that the annual renewable term life insurance policy is a bad policy?
On the contrary if it is properly understood and if it is used for the purpose it was intended this policy can fulfill a needs for its owners.
It can fulfill many a need in truth. The need usually short term needs as the premiums increase each year, nobody wants to pay more.
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When you buy an annual renewable term life insurance policy you are actually buying a one year term insurance policy
with the option of renewing it every year without having to qualify for
it over again each year.
The thing that bothers most people about the annual renewable term life insurance policy is that the premiums increase each year.
What you need to understand is that you are paying the premium for a one year term policy with a rate that is the correct rate for that particular age...
All life insurance risks are calculated in the same manner but to appreciate the fact that some premiums remain level and others are constantly on the rise like the annual renewable term life policy we need to look at the premium structure of some other policies.
We can therefore conclude that the premiums charged for the annual renewable term life insurance policy is a fair premium. The face amount of this policy remains level for as long as you own it.
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Get up to $1,000,000 term life insurance no medical required.
Death proceeds from 10 year life insurance can be in lump sum form or incomr form
Term life insurance is life insurance in it's simplest form. These policies stay in force for a specific number of years, for example, 5 years 10 years etc.
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