Yearly Renewable Term (YRT)
Candlefocus EditorThe primary advantage of YRT life insurance is that it is more affordable than other types of life insurance policies, because in general, it offers less coverage and only lasts for one year. This makes it an excellent option for those who want to provide financial security for their families for a short period of time. Additionally, the cost of the policy will remain steady each year.
YRT life insurance is often chosen by those who have a temporary need for life insurance, such as a temporary worker who needs life insurance coverage while they are employed. It is also often used to provide coverage during a time when the individual will be taking a break from a permanent form of life insurance.
It should be noted that because of the nature of YRT life insurance, it is not suitable for those who are looking for comprehensive life insurance coverage that is long-term and covers a longer period of time than one year. The costs associated with YRT life insurance can add up over the course of multiple years, often making the cost of coverage more expensive than other types of life insurance plans.
If you are looking for a temporary form of life insurance coverage, YRT life insurance is a good option. It is inexpensive, easy to understand, and offers coverage for a short period of time. However, if you need long-term coverage, it is best to consider other options such as a permanent life insurance policy.