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H o r e n b e r g I
n s u r a n c e S e r v i c e s, I n c.
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 Annual
Term Insurance |
| Summary |
| Annual term insurance policies are written with the premium guaranteed for one year at a time. Many annual policies offer a guarantee that you can automatically renew the policy each year for a certain number of years in the future with no medical underwriting required. Since life insurance premiums rise as you age, the cost increases every year. This type of policy does not accumulate cash value. |
| Variations |
| Different insurance companies offer different variations of this policy type. Many companies offer a five year renewable term where the premiums are guaranteed for five years and the renewal, at a higher premium, is also guaranteed. Many employee sponsored policies are of this type. Some companies include an option to convert to a permanent policy at some time in the future. These policies are sometimes called "convertable term". |
| Advantages |
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The advantage of annual renewable term is that it offers the highest death benefit for the premium for a younger person. The disadvantages are fewer options and potentially higher premiums over the long run. Also, a deterioration in health could mean the loss of the policy altogether if there is no conversion option at the end of the renewal guarantee period. More Information Get an Instant Quote © 1999 - 2003 Horenberg Insurance Services, Inc. |