MAIN
INFORMATION
TYPES OF LIFE INSURANCE
COMPANY



Life Insurance Learning Center - Life Insurance Types

One Year Renewable Term Life Insurance Policy

This term life insurance policy is sometimes called a yearly renewable term or an annual renewable term life insurance policy. This term life insurance policy is one of the most widely purchased and offered life insurance coverage plans out there.

Based upon the name, the term life insurance policy lasts one year, however it can be renewed. A good thing about this term life insurance is that after the term life insurance policy expires, if the insured (or policy owner) decides to renew the term life insurance policy, the insured does not have to re-qualify. This is considered a renewal of the term life insurance policy "without evidence of insurability."

The term life insurance policy will state how many times it can be renewed, or up to which age it can be renewed till. Therefore, there is always an option to extend the term life insurance coverage regardless of a health background or hazardous occupation.

The death benefit on a one year renewable term insurance policy stays the same during the one year duration. Also, the death benefit stays the same even after the term life insurance policy is renewed. However, the premium increases each time the term life insurance policy is renewed, and the increase is more and more as the term life insurance coverage is continued. The reason for this is because as the term life insurance policy is extended, the age of the insured goes up, and ultimately, death rates increase with advancing age.

There is no savings component (no cash value) to this term life insurance policy. The amount of protection in this term life insurance policy is equal to the death benefit. Some of these term life insurance policies are non-participating and some are participating. You should decide which you prefer and make sure you ask the term life insurance agent whether the term life insurance policy is participating or not.

Back to:
The Learning Center Main Intro
Life Insurance Wiz.com

FREE LIFE INSURANCE QUOTE, CLICK HERE!

 
Copyright (c) 2006. LifeInsuranceWiz.com. All rights reserved.
 
<%-- BEGIN GA Code --%> <%-- END GA Code --%>