shopify analytics ecommerce
tracking

Yearly Renewable Term Insurance

The yearly renewable term insurance policy, sometimes referred to as the increasing premium term insurance policy, needs some explanation.

I think of this policy as a pressure policy if you intend to keep it for more than one year. Here is why I feel this way.

When you buy the yearly renewable term life insurance policy the premium you are quoted is for you at the given year that you request the quote.


What will happen to your family when you die? Would they be provided for? Life Insurance is the solution and we can help. Compare Multiple Quotes from Highly Ranked Carriers and Save up to 70%! Getting your quote is easy and FREE. Click Here And Save


Yearly Renewable Term Insurance Premiums Increase

At this same time next year you will pay a premium for a person in your same exact situation but one year older.

The following year the premium increases again as you will be paying a premium for a person two years older. On and on it goes...

Why the constant premium increase? The fact is when you buy a yearly renewable term insurance policy you are buying a one year term policy.

There is no extra premium load in this policy. You are paying the premium that anyone in the type of health situation would pay. Let me explain...

All life insurance companies employ actuaries who take into consideration all possible variables and have the ability to calculate very accurately how many people at a given age, say age 25, will die in a particular year.

Because they know this they can spread the risk and charge a premium accordingly. The yearly renewable term policy is pure insurance with no loads; thus the additional premium the following year.

Let us compare that with a 5 year term policy...

With the 5 year level term policy the premium is loaded up front. The actuaries have calculated the premiums for 5 years and spread the risk cost over that period...thus a level premium.

I don't usually recommend this policy as people tend to forget what the policy is all about and when they see the premium increase they get scared and attempt to cancel the policy.

That is why I look at the yearly renewable term insurance policy as a pressure policy. I recommend a 5 year level term policy or a 10 year level term policy for people who are strapped for cash...instead of a yearly renewable term insurance policy.


Can you think of anything more important than your Family's Security? What would happen to Your Family if you died? Would they be provided for? Compare Quality Life Insurance Quotes from Quality Carriers and Save. Click Here To Learn More


Home Yearly Renewable Term Insurance Compare Term Life Insurance Quotes Increasing Premium Life Insurance 15 Year Term Life Insurance 20 Year Term Life Insurance 25 Year Term Life Insurance 30 Year Term Life Insurance Affordable Life Insurance Annuities Beneficiaries Of Unclaimed Life Insurance Buy Term Life Insurance Buying Life Insurance Cashing A Life Insurance Policy Cheap Life Insurance Decreasing Term Life Insurance Quotes Deferred Annuities Disability Insurance Financial Planning Graded Premium Life Insurance How Much Life Insurance Incontestability Instant Term Life Insurance Quote Investing With Whole Life Ins Joint Term Life Insurance Life Insurance Rate Quote Life Insurance Settlement Option Long Term Care Low Cost Life Insurance Mortgage Insurance Old Life Insurance Permanent Vs Term Term Life Insurance Rate Whole Life Insurance Rate Whole Life Insurance Rate Quote

Tools And Resources

Life Insurance Need Calculator

Recent Articles

  1. Life Insurance - Do You Really Need To Own A Policy?

    Life insurance is one of those taboo subjects for normal, casual, or friendly conversation. Whenever people, however, develop a life threatening illness, have a close encounter with another vehicle on…

    Read More

  2. Instant Term Life Insurance Quotes - Quality Term Insurance

    The availability of instant term life insurance quotes on the Internet makes buying life insurance a "walk in the park". Some companies do take the application online while others send you an agent af…

    Read More

  3. How Does Life Insurance Work - Life Insurance Explained

    How does life insurance work? What is life insurance all about? What can it do for me? Most people ask these questions at some point in their lives. Let us look at the subject and see how these questi…

    Read More

  4. Cheap Term Life Insurance Quotes - Cheap Term Insurance Rates

    How can you get cheap term life insurance quotes? You want to buy some life insurance but you first want to have an idea how much to buy and what will it cost. The life insurance business has come a l…

    Read More

  5. Cheap Life Insurance Quote - Cheap Term Life Insurance

    Want a cheap life insurance quote? If you are in search of cheap life insurance it may be an interesting exercise to look at what is available before you start.

    Read More