DEFINITION of 'Yearly Renewable Group Term Insurance '
A type of insurance policy purchased by employers to cover several people at a time and is reviewed on a yearly basis, which helps reduce premiums paid by the employer. Yearly renewable group term insurance range from $100,000 to $1 million in increments of $25,000. This insurance does not force possible policyholders to provide medical evidence and they are only subject to basic insurability conditions.
BREAKING DOWN 'Yearly Renewable Group Term Insurance '
This plan includes an accelerated benefit provision for policyholders who are diagnosed with a terminal illness. Insurance premiums increase as the policyholder ages. Policy certificates are renewable annually until the age of 80. Unless they have previously renewed their policy, if a policyholder dies a day after the one-year term, the beneficiary will not receive benefits. Generally, new policyholders are allowed a full 30-day period to review coverage before the premium amount is due.