What is Annual Term Life Insurance?
Like the money spent insuring a car, insuring your life with annual term life insurance will cost you a certain amount every year. Paying the annual bill for this life insurance -- dropping that check in the mailbox -- will ensure you a year of worry-free security for your family.
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Renewed every year, annual term life insurance is paid at the beginning of the policy, and covers the policy holder for the term of the policy -- generally, one year. The insured will pay a fixed amount at the beginning of the year for a certain premium, and if the person does not die, then the term can be renewed the next year with a doctor's visit and another payment. Bear in mind that annual term life insurance renews annually, which means that premiums will continually change based on a number of factors, including your age and health. The only way to ensure that your premiums will not go up is to opt for a level term life insurance policy, or even a pricey whole life insurance policy. Annual term life insurance, on the other hand, is among the least expensive of life insurance policies.
How does annual term life insurance work?
In the event that the insured dies while insured with annual term life insurance, the beneficiary of the insured will receive the death benefit agreed upon in the insurance policy. The premium for the policy is paid at the beginning of the term, and the health, age, and payout of the policy determines the amount paid.
If the insured is a young, healthy non-smoker the premium will be low. As the proprietor of the policy gets older or becomes unhealthy, the premium paid every year for the same amount of coverage will increase. Hypothetically, a $100,000 dollar death-benefit policy for a 25-year-old may cost only $500 a year, while the same policy for a 50-year-old may cost double that amount, and the same policy for a 100-year-old could cost $100,000, because of the high risk of death.
Protect you and your family with an affordable annual term life insurance policy.