Prices Increasing Soon
Annual Renewable Term Insurance (ATR) is tailored for short-term coverage needs. It offers protection for one year at a time, with the option to renew the policy annually, typically without requiring a medical exam or proof of insurability. Keep reading to learn more about the features and details of this type of policy.
#All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply
By clicking on "View plans" you agree to our Privacy Policy and Terms of use
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
Annual Renewable Term Insurance is a type of life insurance that covers you for one year at a time, with the option to renew it every year. It’s a flexible choice for those who prefer short-term coverage without being locked into a long-term commitment.
Annual Renewable Term Insurance works by providing coverage for a one-year term. At the end of each year, you can renew the policy, but the premium increases as you age. This type of policy is ideal for people who need temporary life insurance coverage.
Example:
You are a 30-year-old professional who takes out an Annual Renewable Term Insurance policy. Your premium for the first year might be ₹6,000. When you renew the policy at the end of the year, your premium will increase due to your age — say it goes up to ₹7,000 for the second year. The following year, at 32, it could increase again to ₹8,000, and so on.
The premium increases each year, but the coverage amount (death benefit) stays the same. While it starts more affordable, the overall cost could increase, especially as you age.
Term Plans
Low Starting Cost: Great for young people who initially want affordable life insurance.
Easy Renewals: No need to reapply or undergo medical tests when renewing.
Short-Term Coverage: Ideal if you only need insurance for a short period, like covering a loan.
Coverage Period: One year at a time, renewable annually.
Premiums: Start lower but increase each year as you get older.
Flexibility: You can renew the policy yearly without needing a medical exam.
Death Benefit: Remains constant, providing a fixed payout if you pass away during the policy year.
Secure Your Family Future Today
₹1 CRORE
Term Plan Starting @
Get an online discount of upto 10%#
Compare 40+ plans from 15 Insurers
Annual Renewable Term Insurance can be a great option for some individuals, but it may not suit everyone. Here's a breakdown of when it might be right for you:
| Individuals | Why Annual Renewable Term Insurance Works |
| Young Individuals (20s and 30s) | The initial premium is low, making it affordable as you start your career. |
| People with Short-Term Financial Needs | Ideal for covering short-term financial obligations like loans. |
| People Without Dependents | If you don’t have a family to support, you might only need coverage for a short period. |
| Individuals Looking for Flexibility | Perfect for those who don’t want to commit to long-term coverage. |
| Feature | Annual Renewable Term Insurance | Regular Term Insurance |
| Coverage Duration | 1 year (renewable annually) | 10, 20, or 30 years |
| Premiums | Increase each year | Fixed throughout the term |
| Initial Premium | Lower | Higher |
| Flexibility | High (renew each year) | Lower (fixed term) |
| Long-term Cost | High (due to rising premiums) | Predictable and more affordable long-term |
Your Future Needs: If you need coverage for a longer time, the rising premiums may not be suitable.
Health Considerations: Renewals don’t require a medical exam, but the increasing cost is something to keep in mind as you age.
Affordability Over Time: Although it starts with low premiums, think about how much you’ll be paying after several years of renewals.
Annual Renewable Term Insurance is a flexible option for short-term life insurance needs. It’s a good fit if you’re looking for temporary coverage or want to keep your options open. However, it’s important to consider how increasing premiums will affect your budget in the long run.
If you’re unsure which type of life insurance is best for you, talking to a financial advisor can help you determine the right option for your situation.
†Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
The ICICI Pru iProtect Super Plan is a pure-term insurance plan
Read more
Many people wonder about its tax benefits when purchasing a term
Read more
Studying abroad can be a life-changing experience, offering
Read more
The divide between rural and urban lifestyles in Tamil Nadu is
Read more
Sikkim, a state rapidly advancing through industrialisation and
Read moreInsurance
Calculators
Payment Methods
Secured With
Follow us on
