An Annual Renewable Term (ART) policy ensures it is guaranteed renewable without what?

An Annual Renewable Term (ART) policy is designed to provide coverage that is guaranteed renewable each year, which means that the policyholder has the right to renew the policy annually without having to provide any evidence of insurability. This is a significant feature for individuals who might face changes in health that could make it more difficult or costly to obtain new coverage.

In the context of the policy, the absence of a requirement for proof of insurability ensures that even if the insured’s health declines, they can still maintain their coverage without the need to go through a medical examination or provide details about their current health status. This makes ART policies particularly attractive to individuals who may be concerned about potential future health issues.

This ability to renew the policy without proof of insurability offers peace of mind and flexibility to the policyholder, as their coverage can continue regardless of changes in their health over time. In contrast, typical life insurance policies may require underwriters to assess health conditions before issuing new coverage or renewing existing policies at different rates.