Short term life insurance is a type of insurance specifically designed for people who go through temporary job loss. It ensures that one remains insured during the waiting period between transition from their old job and a new one. It works for people who previously enjoyed the security of a group insurance plan, given through their employer. Employees who converted their group insurance into an individual plan may not benefit from short term life insurance when they lose their job.
Life insurance is planned with the eventuality of death in mind. While it can help one meet their financial goals, it is usually meant to provide financial security to loved ones in the event that one dies. However, the risk of one dying in a short period of time is normally very low. As such, when you take up a short term insurance policy, you are guaranteed of being fully insured.
The approval process is short and simple. There are no medical examinations or queries to go through before you can be approved for a short term life insurance policy. If you apply online, you will finish the process in about 30 minutes. Insurance companies will often call you to verify your details before processing the policy for you. The cover takes effect immediately meaning you get to enjoy coverage on the same day you apply for a policy. Payment of premiums is like that of any other insurance plan, usually monthly.
Short term life insurance is available in two distinct types: accidental death policy and regular term life policy. Accidental death policies will make payouts only if the policy holder dies from any form of accident as stipulated in the policy. Regular term life policies on the other hand cover death generally, except where one commits suicide. Accidental death policies are good for younger people, especially if their jobs expose them to high risk of death. They have lower premiums and are thus the cheaper of the two. You can get a policy for $50,000 - $250,000. If however you have young children or many pending financial matters such as mortgages, short term insurance is not an advisable option. Longer term life insurance would be more appropriate, as it will ensure that your unsettled debts are cleared.
Many insurance companies give short term policy holders the chance to take up a new policy once the current one expires. Alternatively, one can convert their short term policy into a term life one. quotes-center.com