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Annual Renewable Term Insurance

Secure your changing needs with annual renewable term insurance. Get long-term peace of mind and stay up-to-date with coverage.

The only insurance you need for your life's changing needs

Starting at ₹534/month*

A product of ACKO Life Insurance - ARN: L0021

Annual Renewable in Term Insurance

Home / Life Insurance / Types of Term Insurance / Annual Renewable Term Insurance

Annual Renewable Term life insurance policies are designed to cover short-term needs. This policy provides one year of life insurance coverage, with the option to renew after 12 months for another year of coverage usually without having to take a medical exam or provide evidence of insurability. Read ahead to know more about this type of policy in detail.

How does an Annual Renewable Term policy work?
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Here's how ART works.

One benefit of an ART policy is that it can be a cost-effective way to obtain short-term life insurance coverage when the policyholder is young and healthy since premiums are lower compared to other permanent life insurance policies. However, keep in mind that the premiums will increase each year as the policyholder ages.

What is the eligibility criteria for Annual Renewable Term Insurance policy? 
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The eligibility criteria for an Annual Renewable Term (ART) insurance policy can vary by insurer, but typically, individuals between the ages of 18 and 75 in good health may be eligible. The policyholder will need to fill out an application and may need to undergo a medical exam or provide health information based on the profile and insurer’s approach.

How is the premium calculated for Annual Renewable Term Insurance policy?
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The premium calculation for an ART policy is usually based on factors such as the policyholder's age, health status, and the amount of coverage needed. It is always advisable to check online life insurance premium calculators to get a fair idea of the premium calculation for an ART policy.

When should you get an Annual Renewable Term Insurance policy?
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Most consumers are better off with standard Term Coverage's consistency. However, sometimes a policy that renews every year makes sense. Here are a few examples. 

What affects the cost of Annual Renewable Term policy?
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The amount you pay in life insurance premiums is based on how much of a risk you pose to the insurance company during the policy's coverage period. Underwriting is how insurance companies evaluate the risk associated with covering you. They provide more affordable rates to attract younger and healthier customers.

The insurance company calculates your annual ATR premium based on the probability of your death in the coming year. As you become older or have health problems, this danger grows.

Traditional Term Life Insurance bases your premiums on your current age and health status. That's why a candidate in their forties might get similar rates they paid as a teenager. Whereas a 45-year-old male who purchases a renewable policy pays nearly twice as much.

Does Annual Renewable Term Insurance allow for riders?
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Similar to traditional policies, riders can be added to your Annual Renewable Life Insurance to provide you with additional coverage or tailor the policy to your specific needs. Here’s a list of such riders.

Accelerated Death Benefit Rider
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This rider, sometimes provided at no additional expense, lets you access a portion of your death benefit to cover the costs of end-of-life care.

Child Insurance
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Child riders" let you protect your kids without paying for an expensive separate policy.

Spousal Insurance Rider
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In the same way, a Child Rider can provide life insurance coverage for a child who doesn't qualify for their policy; a spousal rider can offer life insurance coverage for your spouse who does not qualify for their policy.

Waiver of Premium Rider
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If you become disabled and are unable to work, your premiums will be waived thanks to the Waiver of Premium Rider.

How does an Annual Renewable Term Insurance policy compare with other level-term policies?
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Please go through the following points to get a fair comparison of ART and other policies. 

Remember that yearly Renewable-Term Life Insurance is temporary protection. If you want to save money over time, opt for a standard Term Life Policy rather than a renewable one.

Frequently Asked Questions (FAQs)
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Here’s a list of common questions and answers related to Annual Renewable Term Insurance.


Is insurability required for an annual renewable term?

To renew your ART policy, you don't usually need to show evidence that you're still insurable. Premiums for annual renewable insurance typically increase annually or every few years because of the inevitable rise in death risk that comes with getting older.

What happens if I miss paying the premium in an Annual Renewable Term Insurance policy?

If you miss paying the premium in an Annual Renewable Term Insurance policy, you will enter a grace period during which you can still make the payment. If you miss the grace period, your policy will be cancelled and you will no longer have life coverage, leaving your family without financial protection. 

How does the premium change in an Annual Renewable Term Insurance policy?

The premium in an Annual Renewable Term Insurance Policy may change each year based on the policyholder's age and other factors. 

How much coverage do I need in an Annual Renewable Term Insurance policy?

It is recommended to opt for a life cover that is at least equal to 10 times your annual income or even 20 times your annual income. However, the specific coverage needed in an Annual Renewable Term Insurance Policy may depend on individual circumstances and needs. 

Why is it helpful to get Annual Renewable Term Life Insurance?

The premiums for Annually Renewable Term Life Insurance are lower than those of other types of coverage in the early years of the policy's existence. Also, you determine how long to keep your policy active.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet, and is subject to changes.