Temporary life insurance coverage
Life insurance policies take between one and two months to process. During that time, you are technically not covered until the insurance company approves you. However, you still have options to protect yourself while you wait.
To avoid waiting for their coverage to kick in, people sometimes go for guaranteed issue life insurance that is effective immediately, but which costs a lot more than a regular policy.
Temporary insurance is a much more cost effective option and is offered by most insurance companies when you apply for life insurance. Qualifying for a temporary life insurance is easier than a regular policy. As long as you’re able to answer a few basic questions and pay the first premium, you will qualify for coverage.
On the other hand, temporary insurance policies may have lower coverage limits than regular policies. For example, let’s say you’re applying for $2 million life insurance policy, a temporary policy may extend only half a million of coverage. You also have to pay for that coverage, although you will be paying according to standard issue rates which are usually reasonable.
Temporary coverage ends the moment you accept the offer from the insurance company. Bear in mind that your regular policy premium may be higher or lower than your temporary rate.
All in all, temporary life insurance is a viable short term alternative to a guaranteed issue policy that may take a big bite out of your pocketbook.
Contact us today to find out more about your coverage options.