DEFINITION of 'Annual Renewable Term (ART) Insurance'

A form of term life insurance that offers a guarantee of future insurability for a set period of years, although premiums are paid every year on the basis of a one-year contract. As such, the premiums will rise over time as the insured person ages. This type of insurance is designed for short-term insurance needs.

BREAKING DOWN 'Annual Renewable Term (ART) Insurance'

Annual renewable term insurance is less common than level term insurance, where premiums stay constant over the life of the contract. The longer an insured person uses annual renewable term insurance, the more costly it becomes.

ART insurance typically offers guaranteed re-insurability for a period of 10 to 30 years, depending on the age of the individual.


RELATED TERMS
  1. Life Insurance

    Life insurance is a contract in which the insurer guarantees ...
  2. Bureau Rate

    A standard price per unit of insurance set by a state's insurance ...
  3. Insurance

    Insurance is a contract (policy) in which an insurer indemnifies ...
  4. Insurance Coverage

    Insurance coverage is the amount of risk or liability covered ...
  5. Yearly Renewable Term (YRT)

    A yearly renewable term is a one-year term life insurance policy. ...
  6. Advance Premium

    An advance premium is an initial premium paid to bind an insurance ...
Related Articles
  1. Insurance

    Understanding Your Insurance Contract

    Learn how to read one of the most important documents you own, your insurance contract.
  2. Insurance

    4 Things That Keep You From Getting Life Insurance

    We look at four common reasons people give for not applying for life insurance, and see if they're legitimate.
  3. Insurance

    The History Of Insurance In America

    Insurance was a latecomer to the American landscape, largely due to the country's unknown risks.
  4. Insurance

    12 Insurance Questions for High Net Worth Families

    High net worth families should ask themselves these 12 questions regarding comprehensive insurance.
  5. Insurance

    Life Insurance

    Life insurance is an important component of basic financial planning. Find out how life insurance works and how insurance companies are able to profit through providing financial security to ...
  6. Managing Wealth

    Why the Wealthy Should Buy Lots of Life Insurance

    Properly structured life insurance can help in managing, preserving and growing wealth.
  7. Insurance

    How To Invest In Insurance Companies

    Knowing the special circumstances that insurance companies operate under helps in evaluating whether or not a listed insurance company is a good investment and whether the economic environment ...
  8. Financial Advisor

    Who Should Buy a Guaranteed Issue Life Insurance Policy?

    Guaranteed issue life insurance policies have added costs and reduced benefits that make them suitable for only a limited pool of buyers.
  9. Personal Finance

    The Best Life Insurance for Military Families

    Two of the most common types of life insurance are term and whole life. Here's why the latter isn't a good idea for most military families.
RELATED FAQS
  1. What is the average return on total revenue for the insurance sector?

    Learn about the three main segments of the insurance industry, and find out what the average return on revenues is for the ... Read Answer >>
Hot Definitions
  1. Net Present Value - NPV

    Net Present Value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows ...
  2. Price-Earnings Ratio - P/E Ratio

    The Price-to-Earnings Ratio or P/E ratio is a ratio for valuing a company that measures its current share price relative ...
  3. Internal Rate of Return - IRR

    Internal Rate of Return (IRR) is a metric used in capital budgeting to estimate the profitability of potential investments.
  4. Limit Order

    An order placed with a brokerage to buy or sell a set number of shares at a specified price or better.
  5. Current Ratio

    The current ratio is a liquidity ratio that measures a company's ability to pay short-term and long-term obligations.
  6. Return on Investment (ROI)

    Return on Investment (ROI) is a performance measure used to evaluate the efficiency of an investment or compare the efficiency ...
Trading Center