1-Year Term is sometimes referred to as "YRT" (Yearly Renewable Term) and/or "ART" (Annual Renewable Term). The premium is established at inception (when the policy is issued) and, with few exceptions will increase every year in accordance with a predetermined yearly premium cost increase.

The yearly premium cost for future years may be either guaranteed or not guaranteed. For Canadian policy contracts, however, the maximum to which the premium could rise for each year is guaranteed.

1-Year Term is best suited for very short coverage needs but can also be used for situations where, temporarily, premium funding resources are very low and coverage needs are comparatively very high.

The key words are "short term" and "temporary" and the increasing cost aspect of 1-Year Term have to be kept in mind.

The foregoing is only a general description and it is strongly recommended that you consult with a qualified financial practioner, agent or broker, who can provide you with professional advice and with detailed CompeteCA(tm) comparisons and evaluations.