Annual renewable term life insurance means that the premiums for a policy are not guaranteed and will increase each year (based on age) by a good margin (often a substantial increase) even though you can technically keep it going til the coverage end date (e.g. 95). In short, you likely would not keep the policy going beyond the first couple years (if at all) due to the sheer expense of the program.
When you’re buying term life insurance, you want to set up a policy that features a level term guarantee (meaning you’re paying the same premium for a set number of years – e.g. 10 years, 15, years, 20 years, 25 years, or 30 years). The longer the term guarantee, the better (even though it does cost more to secure a longer term guarantee, it can provide much more cost savings over time the longer you live).
If you want to guarantee the premium remain fixed and guaranteed for the rest of your life, you would want to set up a permanent insurance policy (either a universal life or whole life poilcy, depending on coverage needs).
I hope the information is helpful – please feel free to contact me for help with your coverage and if you have any other questions. Thanks very much.
