Yearly Renewable Term (YRT)

Term life insurance provides protection for an initial low premium with the rates generally increasing each subsequent year. It pays a benefit only if you die during the term of the insuring agreement. Most term insurance policies can be renewed annually until you reach the end of a specific period (say until age 95). However, after a period of years, most policies require evidence of insurability to be furnished in order to qualify for the lowest available rates.

If you need life insurance for shorter time periods (4 years and less), you should purchase Yearly Renewable Term (YRT). Examining every type of life insurance plan available on the market, YRT usually provides the least expensive life insurance for the first few years. But when buying term life insurance, buyers should not always buy the policy with the lowest first year premium. These policies frequently raise their rates more rapidly in later years and can end up costing more, over time, than companies with higher first year premiums. InsuranceMachine's interactive quoting system has selected policies which have low first year premiums and provide fair renewal premiums as well. Term life buyers, or prospective buyers, should consult an agent to create an insurance program exactly right for you. In this conversation, discuss how long you want to keep the insurance policy, and what your current and future cash flow might be.