yearly renewable term insurance

  • Term insurance for consecutive one-year periods at increasing rates. The right to renew the insurance at the end of each year, without providing evidence of insurability, is contained in the contract. The premium rate is increased at each renewal as the age of the insured increases. The most common uses for yearly renewable term are in group insurance and reinsurance, though some individual policies are sold on this basis.

    Internal Revenue Service 1

1Internal Revenue Service, Internal Revenue Manual 4.42.6 Glossary, http://­www.irs.gov/­irm/­part4/­irm_04-042-006.html (last accessed Dec. 22, 2009).