Annual renewable term
| Term Policies: Annual Renewable Term |
| Description |
Premiums |
Cash Value |
Advantages |
Disadvantages |
Uses |
| One year pure protection; Evidence of insurability may be required each year |
Premiums increase each year |
None |
Coverage at lowest cost; Savings over cash value policy may be invested in a "side fund" |
Rates rise sharply with age; May become too costly; No forced savings element |
Large need, low income; Need is for short term |
|
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