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LogoutA one-year term life insurance policy is known as an annually renewable term. This sort of policy provides policyholders with a quotation for the year in which they purchase coverage. When purchasing a yearly renewable term insurance policy, the premium is offered for a one-year term beginning in the current year.
The insured will pay another yearly premium for a person in the same circumstances, but one year older, at the same time next year. The premium will rise again the next year, as it will for the same person who is two years older. Premiums rise each year to offset the increased risk that comes with becoming older. This form of insurance is also known as yearly renewable term insurance or rising premium term insurance.