An annually renewable term policy is a life insurance plan that provides coverage for a period of one year for a set premium.
If you outlive the one year period, your life insurance coverage ends.
However, you have the option of renewing your annual term life policy for another 1 year term at a higher premium, if you decide you need life insurance for another year.
But, the amount you pay for your life insurance policy will increase each year as you renew the policy. That's why it may be more affordable to buy a 5 or 10 year level term life insurance policy if you have a need for life insurance that will last for more than a few years.
Learn more about an annually renewable term policy.