what is the yearly renewable term plan of reinsurance 
the yearly renewable term plan of reinsurance is a type of life reinsurance where mortality risks of an insurance company are transferred to a reinsurer through a process referred to as cession 1in the yearly renewable term plan of reinsurance the primary insurer the ceding company yields to a reinsurer its net amount at risk for the amount that is greater than the retention limit on a life insurance policy this plan is a reinsurance instantiation of a yearly renewable term yrt which consists of one year term policies that are renewed annually understanding the yearly renewable term plan of reinsurancereinsurance allows insurance companies to reduce the financial risks associated with insurance claims by spreading some of the risk to another institution 2 therefore a yearly renewable term plan of reinsurance allows the primary insurance company to spread some of the risk involved in a life insurance policy to another institution 1the amount transferred from the primary insurer to the reinsurer is the net amount at risk which is the difference between the face value and the acceptable retention limit determined by the ceding insurance company for example if a policy s death benefit is 200 000 and the ceding company determines the retention limit to be 105 000 then the net amount at risk is equal to 95 000 if the insured dies the reinsurance pays the portion of the death benefit that is equal to the net amount of risk in this case the amount above and beyond 105 000 