Temporary Life Insurance

What is a temporary life insurance agreement (TIA)?

If you are looking to secure temporary life insurance, your insurance company will have you sign a temporary life insurance agreement. This is the official agreement that you need for temporary life insurance plans.

This is an important point. Even if your term life insurance has a provision to offer you temporary life insurance or you have an agreement with your insurer to secure temporary life insurance, you are not officially covered by these additional benefits until this agreement is in place.

How do I qualify for temporary life insurance?

If you are considering applying for life insurance, you can consider submitting a premium check along with your application. Submitting the first modal premium at the time of application may help you secure temporary coverage while your application is in underwriting.

I say “may” because you will still need to qualify for the temporary coverage policy type after your application is reviewed. This means your medical health condition and age will be factors in securing even temporary life insurance.

Most life insurance agents will need ask a series of questions about your medical history and your current medical condition. Temporary coverage is usually available for applicants with no major medical history and those up to age 70.

Usually it will take time for your application to be reviewed and approved. If you are approved, your insurance will cover you retroactively. This means, once approved, if something had happened in the interim, the retroactive insurance would payout.

To understand this better, consider an instance where the insured applies for temporary life insurance and signs an agreement for coverage. He completes the application honestly and accurately but passes due to some unforeseen issue.

The underwriting process and application review should continue through to completion. If the insurer approves the application and all premiums were paid, the family of the applicant has a valid claim on any insurance payout, just like any other average life insurance policy.

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What happens to my temporary insurance premium if my policy is not approved?

There are instances where an insurance company does not want to assume the risk for temporary coverage. This is a problem in two ways. First, it indicates finding affordable coverage might be difficult to find. Second, you are not covered for the current period.

If you are concerned about having insurance gaps, you might get ahead of the need for ever relying on temporary insurance by acquiring a policy that guarantees convertibility to a permanent insurance policy.

If you have been paying life insurance premiums during the application process and your application is disqualified, you should receive a refund of all payments.

When does temporary life insurance begin?

Temporary life insurance coverage technically begins as soon as you send in your first premium payment, even if the application is still processing. If the application is approved, your coverage will have started from the first premium payment date.

What happens when your life insurance company says no and denies your coverage? If your application is denied, then you should have your premium payment returned.

When does temporary life insurance terminate or end?

The primary purpose of temporary life insurance is to provide you coverage during a gap between your old insurance policy and your new one. As soon as your application and underwriting for a new policy is in place, your temporary insurance policy will expire.

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What if I pass away with only temporary life insurance in place?

Temporary life insurance is designed to cover you in the event that something happens during the interim between your old coverage and your new coverage. Temporary life insurance will payout to your family if something were to happen while you are covered by a temporary life insurance policy.

Just be sure that all of your premiums are paid up and on time. Insurers will allow the policy to lapse even if a premium payment is just a few days late. A helpful tip is to just set automatic payments up and trigger a reminder to check that payments went through on the payment due dates.

How do you shop for temporary life insurance quotes?

Whether you’re looking for temporary life insurance quotes so that your loved ones are protected while you’re in between coverage or for travel reasons or something else, the best places to start your search would be with the top life insurance companies.

The best temporary life insurance rates around are likely found with the following companies, which also happen to be the top 10 life insurance companies by market share, according to the Insurance Information Institute.

• Lincoln National Corp.
• New York Life Insurance Group
• Massachusetts Mutual Life Insurance Co.
• Prudential Financial Inc.
• John Hancock Life Insurance Co.
• State Farm Mutual Automobile Insurance
• Transamerica
• Pacific Life
• American International Group (AIG)

As you can see, the best life insurance companies are some of the most familiar names in the industry.

How much does temporary life insurance cost?

Like other types of life insurance, the cost of temporary life insurance will depend upon your age and general health condition. Although you may not need to go through as extensive an underwriting process, you will need to complete an application.

If you are younger and in good health, you can find very low temporary insurance rates.

Our free quote tool can help you see who will offer you the most affordable temporary life insurance, with rates starting even as low as $12.72/month.

If you are older and have some health concerns, temporary insurance may be a bit more expensive, but you should consider that as you get older, it is even more important to avoid gaps in coverage.

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What is the maximum amount of temporary coverage?

Some life insurance companies allow temporary coverage up to $500,000 while others will extend coverage up to $1,000,000 (this amount includes any existing coverage you may already have). Start dates and stop dates for coverage also vary by company.

In order to learn more, you may want to find an agent with a temporary life insurance license for your state. You can usually look up agents for your state by checking out the NAIC map of state life insurance departments of life insurance by jurisdiction.

What’s the bottom line?

Temporary coverage can be a tremendous benefit to you when applying for life insurance. The added peace of mind may be well worth the initial premium outlay. Plus, the insurance company will return your premium to you if your application is declined for any reason or if you simply decide not to accept their policy offer.

Chances are, if you are looking for a temporary life insurance policy, you are also shopping for longer-term alternatives. Get started on your journey for finding the right policy by clicking on our free rate tool below right now and get a rate in seconds.

References:

1. https://www.iii.org/fact-statistic/facts-statistics-life-insurance
2. https://content.naic.org/state-insurance-departments

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