It's a type of life insurance plan that provides temporary coverage lasting for a period of one year.
You may choose to renew your policy for another year when your current policy expires.
However, the premium charged for your renewal policy will be higher, based on your age at time of renewal.
If you need coverage for a period of 5 years or more, you will find that level term life insurance offers more affordable protection with level premiums for the entire duration of your policy - 5, 10, 15, 30, 25 or 30 years.
This would likely be cheaper than renewing an annual policy each year for 5 or more years.
Learn more about an annual renewable term life insurance policy.