Annual Renewable Term (ART)

Remain the same for the entire term of the policy — A level term policy guarantees a level death benefit and a level premium for the entire term period, such as 10, 20, or 30 years. Because mortality risk rises with age, the level premium is higher in the early years than an annual renewable term premium, but it does not increase during the term. At the end of the term, the policy may be renewable or convertible under the contract, or it may simply expire, depending on the policy's provisions.

National insurance concept

The face amount and the premium both remain level throughout the term period. — Level term insurance provides a fixed face amount and a fixed (level) premium for the entire stated term, such as 10, 20, or 30 years. The predictability of the premium makes it popular for budgeted protection, and coverage is guaranteed for the term period. This distinguishes it from decreasing term, where the death benefit declines over time while the premium stays level, and from annual renewable term, where the premium rises each year as the insured ages. If the insured dies during the term, the full face amount is payable; if not, coverage simply expires at the end of the term.

National insurance concept