Short Term Life Insurance — Life Insurance Plans, Coverage & Quotes
If you have a spouse, partner, and/or children that depend on you financially, having some form of life insurance is essential. Studies predict that you will need anywhere from five to 15 times your annual salary in order to continue to provide your family with the lifestyle they have become accustomed to after you’re gone. What if you only need life insurance for a certain period of time? For example, you may be between employers and expect to have a group life insurance policy. In those cases, a short term life insurance policy may be right for you. Life insurance is closely intertwined with health insurance. In many cases, both are offered and bought simultaneously. Some of the same companies offer life insurance policies to individuals in addition to temporary health insurance.
Life and health insurance are each meant to protect against financial ruin under unexpected circumstances; the policyholder’s death in the case of temporary life insurance. The insurance payout can be used for any purpose. It can help your beneficiaries pay for funeral expenses or outstanding debts. A high quality life insurance plan will reduce the burden on your loved ones, and provide you with protection during a specified period of time
There are several types of short term life insurance. The most affordable short term life insurance is term life insurance. A term life insurance quote is usually the cheapest life insurance, as compared to other types with the same cash value. This is because the life insurance company’s risk is reduced. When you buy a term life insurance policy, the cash value is only paid out if you die within the life insurance term. You can buy a temporary term life insurance plan for time spans ranging from several months to several years. Keep in mind that term life insurance does not serve as a method of savings or earn interest. Any sum you borrow from the policy must be paid back with interest. Otherwise, the amount will be deducted from any future payout. Given the shorter length of temporary life insurance plans, it is not recommended that you take money out of the policy.
When buying a short term life insurance plan, there are several important factors to consider. You can calculate the desired cash value of the payout in several ways. There is the multiplication strategy, in which you select a policy worth several times your annual base salary. It may also be a good idea to incorporate the cost of any outstanding debts that will be left behind after your passing; these include, but aren’t limited to, mortgage payments and credit card bills. The selection of temporary life insurance should balance the cost of monthly premiums you can fit in your current budget with the face value that would best provide for the future (preferably enough to replace your income for several years).
VitalOne has licensed insurance agents available to help you select a temporary term life insurance policy that is able to protect your loved ones after you’re gone. We can provide you with a short term life insurance quote now.