Question

is a term life insurance policy that can be renewed either on a yearly basis or for a longer period of time. It will provide life insurance coverage on the death of the policyholder.

Answer 1

If you die during the term, a death benefit is paid out. If you don't die during the term, the policy terminates at the end of the term. ... A major benefit of this type of policy is that the premium money returned to you is completely tax-free, as it is not considered income but simply a refund of premiums.

As you're researching term life insurance policy options, you may come across the term “annually renewable premium.” ... But for an annually renewable premium term policy, the premium will increase each year. Over time it's possible to pay more in premiums than what would have been paid for a level premium term policy.