When would a person purchase “annual renewable” term?
In most cases, you wouldn’t want annually renewable. There are, however, a couple of exceptions. If you have a business start-up loan that will be paid off in a year or two, you might want insurance to pay that bill in the event of something happening to you. Also, if you develop a serious illness and cannot get any other insurance when the term expires, you will have to hang onto the term even at the increasing price. Although it sounds rather harsh, a person with a very limited life expectancy would probably not care about the steep increases in later years. The renewal price for the first few years is usually fairly reasonable, even though it will be triple (or more) the original price.
