Term Life Insurance
Annual Renewable Term Life Insurance
Term Life Insurance
By : vincent yeong
Term life insurance is the most simplest and original form of life insurance, it has the cheapest premium because it provides no cash value to the buyer, and there will be no saving or refund of premium. This is fair enough because this policy is designed solely for life protection, and very inexpensive premium is required.
As the name implies, term life insurance insures the buyer a specific term of his or her life only, once that term is expired; the buyer has the option to renew the policy at an increased premium or discontinue or purchase a new policy. This is much recommended to those who can’t afford expensive premium but need big coverage, especially a bread-winner with many children to support and those who find expensive premium is a burden.
Annual renewable term life insurance
The word annual means one year, thus explains the meaning of the policy. The term of an annual renewable term life insurance is one year, the death benefit is payable to the beneficiary if the insured dies within the one year period, there will be no compensation if the insured dies even one day after the expiration of the policy.
In reality very few people will purchase this policy because a person who purchased it will die in the period of one year is rare case. Anyone bought this policy contracted a critical illness during the term but survives until the end of the expiration, he will receive no compensation, but because of the illness he will be considered as uninsurable and unable to renew the policy.
...