| 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 |