- 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.
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.
Investment dictionary. Academic. 2012.