It is important to keep in mind that the primary purpose of annual renewable term insurance is to accommodate short - term insurance needs. (compuquotes.com)
In fact, annual renewable term insurance policies offer the lowest initial premiums of any insurance policy, making it the most affordable policy type to buy. (termlife-insurance.com)
When a premium is paid, a portion pays for annual renewable term insurance based on the life of the insured. (investopedia.com)