Most term insurance riders on Whole Life policies are made up of one-year-term insurance or yearly renewable term as it’s sometimes called. One-Year Term Insurance is a type of life insurance that provides coverage for just one year. It is typically more affordable than permanent life insurance because it doesn’t build cash value and only pays out if you pass away during that year. This type of insurance can be a good option if you need temporary coverage for specific situations, like a loan or during a major life change.
Because One-Year Term Insurance is short-term, it’s important to reassess your coverage needs each year. If you still need insurance after the year is up, you’ll need to renew or purchase a new policy, which may come with a different premium. This can be a practical choice for those seeking flexibility without long-term commitments.