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Annual Renewable Term Insurance Basic Features

Term Policies: Annual Renewable Term
Description Premiums Cash Value Advantages Disadvantages Uses
One year pure protection; Evidence of insurability may be required each year Premiums increase each year None Coverage at lowest cost; Savings over cash value policy may be invested in a "side fund" Rates rise sharply with age; May become too costly; No forced savings element Large need, low income; Need is for short term

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