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Understanding Short Term Life Insurance

By Compuquotes Team on March 27th, 2008

Statistically speaking, about one in ten Americans will changes jobs this year and experience a lapse, even a small one, in health and life insurance. While the chances of serious illness or death striking during that time may be small, it is not insignificant. That's why most insurers offer short term life insurance and health insurance.

Short Term Need, Short Term Solution
Applying for short term life insurance is usually much quicker and easier than traditional long term policies. The risk of death during a short amount of time, say between one month and one year, is relatively small so insurers have less to worry about. Some short term life insurance can be applied for, underwritten and approved within 20 minutes online. No medical tests, no physicals, little or no delay from application to approval to coverage.

Short term life insurance policies typically come in two flavors: regular and accidental death only. The younger you are, the less you need regular coverage. That's because you are more likely to meet an untimely death by accident the younger you are and the more likely you are to expire of natural or health related causes as you advance in age. Regardless of your age, accidental death policies are considerably cheaper than regular plans.

Small Span, Small Policy
You won't find short term life insurance policies offered for a million dollars or even half a million. In fact, you are much more likely to them in the $50,000 to $100,000 range, though you might find one for $250,000 occasionally. Premium payments are comparable to long term insurance policies. Some premiums must be prepaid upon approval, others can be paid for monthly. Numerous insurers offer a rollover option, should you decide to keep the policy for five, ten or more years.

Timing is Everything
Depending on your circumstances, you may not need short term life insurance in between employer-provided policies. If your children are enrolled in higher school or your spouse would have a difficult time paying outstanding bills, like the mortgage, in the event of your untimely death in between coverage, you really should consider short term life insurance. You may not need it, however, if you are single or your spouse will have access to other investments to pay the mortgage and the children's university costs.

The short term policy you choose doesn't need to make your heirs rich but should take care of their financial needs. Consider how much would be needed to pay off your children's college tuition and any mortgage balance.

Finding Short Term Insurance
To find short term life insurance, try calling your current or previous insurance carrier. They may be able to offer the best premiums with higher payouts. Consider calling your COBRA health insurance provider as well, they may have their own temporary life insurance policy you can add for just a few additional dollars per month.

You can also look online for insurance providers & quotes at this site or others.

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