Annual Renewable Term Life Insurance

Over 100 Carriers to Quote From. Here are a few of them!

Annual Renewable Term (ART) Life Insurance provides flexible, short-term protection with guaranteed annual renewability and no health exam required on renewal—making it ideal for transitional life phases. Rather than committing to a long level-term policy, ART allows you to renew each year, adjusting coverage to your evolving needs. It’s often the most affordable way to secure immediate coverage, especially when long-term plans are uncertain.

Explore Flexible Term Life Options

Compare annual renewable term life with other terms—from 5- to 40-year—to find what fits your current needs and future plans.

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How Annual Renewable Term Works

No exams to renew—your policy can continue even if health declines.
Premium increases annually based on your age at renewal.
Coverage can often be renewed until a specified age limit (commonly 70–95).

When ART Makes Sense

Transitioning jobs or awaiting new employer-funded life coverage.
Temporary needs like paying off short-term debt or bridging to long-term coverage.
Individuals currently in poor health, negative reports on MIB, or smokers who expect improved health later—all without locking into long-term premiums.

Compare ART to Other Term Lengths

See side-by-side quotes for ART versus 5- to 40-year level term policies using our real-time calculator.

ART vs Level-Term Coverage Comparison

Option	ART (1-Year Renewable)	Level-Term (5–40 Years)
Initial Premium	Lowest	Higher
Renewability	Automatic without new exam	No renewability without new application
Premium Stability	Increases yearly	Remains flat for the term length
Best For	Short-term, high uncertainty situations	Long-term protection with steady costs

Explore Other Term Lengths

Case Example

A self-employed individual needing temporary income protection bought an ART policy. When they became healthier and secured long-term group coverage, they switched to a 20-Year Level-Term policy—locking in price stability at a low cost.

Why Work With Diversified Insurance Brokers?

Since 1980, we’ve helped clients choose term options that align with evolving life stages. Whether you need short-term flexibility or locked-in long-term stability, we compare ART and level-term options from 75+ carriers to pinpoint the best fit. Learn more about our life insurance services, explore burial insurance, and see why families choose to work with us.

FAQ: Annual Renewable Term Life Insurance

What is annual renewable term life insurance?

Annual renewable term life insurance is a policy that lasts one year at a time and must be renewed each year. Premiums typically increase each renewal based on age and risk.

How do premiums change each year?

Premiums usually increase annually as you age or according to risk classes established at underwriting. Younger, healthier applicants begin with lower rates and see increases as they renew.

Is there a medical exam required?

It depends on the carrier and the amount of coverage. Some policies offer simplified underwriting or no-exam options for certain applicants.

Can I lock in a rate later?

Yes, many annual renewable term policies include an option to convert to a level term or permanent policy within a specific period, without needing a new medical exam.

How does this differ from multi-year or level term policies?

Annual renewable term provides lower upfront cost and flexibility but costs tend to rise each year. Level term or multi-year term offers locked rates for longer periods, which may mean higher initial premiums but more stability.

Is this type of policy right for temporary coverage or short-term obligations?

Annual renewable term is often a good fit for those needing coverage for short-term financial obligations—like a business loan, mortgage gap, or project—because premiums are low to start and you can adjust as needs change.

How does cash value or benefits work? Do returns vary?

Annual renewable term does not build cash value. It provides pure death benefit protection without investment components. Returns don’t apply—it’s not an investment product but protection only.

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