Annual Renewable Term

Written by Strahan Financial Services

Annual Renewable Term Life Insurance 

Annual renewable term life insurance is a short-term life insurance policy solution. Unlike regular term insurance that ranges from 10 years to 30 years, this term is purchased in one-year increments and renews annually.  After the first year, premiums are recalculated each year. You pay more for the same death benefit coverage.

Annual renewable term life insurance or “ART” as it referred to lets you lock in a term period. When this period expires, you must reapply, be approved, and possibly take another medical exam to extend the benefit coverage. Few people carry this policy for a lengthy time. Most purchases of annual renewable term life insurance are for those who want short, fast, temporary, and less expensive life insurance coverage. Check the rates here, click one year term.

Who Should Consider Annual Renewal Term The Short Term Life Insurance Solution

  • Medical professionals beginning a new practice or business owners that need insurance but need to save money until established.
  • Smokers who are trying to quit smoking. And are shocked by what insurance companies charge as a smoker rate for life insurance.

If you are a smoker who is trying to quit smoking and give up the habit, there is another benefit of ART insurance. To qualify as a non-smoker for regular life insurance, you need to be clean from cigarettes for one year.  If you didn’t know about “ART” coverage, you might believe you have to tolerate the higher premiums with a smoker rating for years to come.

However, rather than paying smoker rates for many years, you could apply for an annual renewable term. Then, after you were clean of nicotine products for one year, you could apply for a regular term policy and save a considerable amount of money since you would then qualify for non-smoker rates.

Annual Renewable Term and Attractive Lower Initial Premiums 

Compared to traditional term insurance annual renewal term is attractive at first because of the lower premiums.  However, it can be an expensive policy to keep a long time.  For the most part, “ART” is not a popular choice because of the rising premiums that occur each year as the policy renews Your premium will rise with each passing year based on your new age and your increased statistical chance of dying. For a short term life insurance solution, it is worth considering.

Even though the premium increases, the policy’s death benefit remains the same. Once you receive the policy, it will include a “schedule of premiums.” The chart will show the maximum possible annual premium cost for your policy. Your insurer will inform you of the exact amount each year at renewal time.

Changes in Your Health Before Renewing The Policy

Eligibility to qualify for life insurance coverage is about your current health, medical background, and family history. The question arises, what if you become seriously sick or terminally ill?

If your health deteriorates, with the annual renewable term, the coverage may not renew, you have then become uninsurable. In this situation, you could be without coverage when you need it the most.

A changed medical condition can also mean that you may not qualify for a regular term policy. Or, if you did qualify, you must pay higher premiums based on the risk the insurance company takes to ensure you.

There are 11 different rates or price categories for life insurance.  What if only qualify for the most expensive rate? So, when it comes down to it, ART insurance should only be considered a short-term solution for your financial protection. Annual renewable term life insurance does let you lock in a period of “insurability.” Insurability is the length of time you’ll be able to renew the policy annually without reapplying or taking another medical exam. You can renew your policy up to a certain age.

Adding Policy Riders to Your Policy

Depending on the insurance company, you may have the option of adding additional riders.  Most carriers included an accelerated death benefit. If you become terminally ill, you can take a portion of your death benefit before death.  The percentage varies from 50% to 100%. Other riders may also be available.

For example, you could add a disability waiver of premium rider, which ensures that your premium is covered if you aren’t able to pay it yourself due to a disability or severe injury. With the option of having riders within your policy, you might have to pay a little more, but you will have the added protection, which can be critical.

How Life Insurance for Parents is Different

  • We are professional                                                                                           
  • We are knowledgeable
  • We use the latest technology for faster policy issue
  • We are customer-service driven
  • We will earn your business
  • We want to over-deliver on your expectations
  • We wish to receive a genuine “Thank you!”
  • We want your referrals
    We Only Use Top Rated Companies

We only use the top 1% of America’s over 250 life insurance companies. These companies are well known and financially stable. Companies that are very highly rated by impartial rating agencies. The companies we recommend have an excellent reputation at paying claims promptly.

They have a long, dependable history of operation in the United States. Many have been around for over a hundred years. Whether you choose a term policy or a whole life policy, the choice you make here will be a personal one. Your choice may well depend on your financial circumstances and future goals.

The critical thing to remember is that some form of life insurance coverage is vital for most of us. Having sufficient life insurance coverage is especially true when we have a family to consider. You can get adequate protection from either kind of policy.

And by moving forward and purchasing a life insurance policy, you can do something today that will outlive your life. Take the time to complete a needs analysis, which will show you how much insurance you should consider replacing your income. Then fill out the insurance quote engine; it is that simple.

about Strahan Financial Services

About Strahan Financial Services
About Strahan Financial Services

We work with individuals across the nation to secure the best life insurance rates.

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September 26, 2019 at 12:16 pm