What is Temporary Life Insurance?

Life Insurance

At the time you apply for life insurance coverage, you may be asked if you would like to have temporary life insurance. What this means is an insurance carrier will agree to provide you with life insurance coverage while they are actively reviewing your application.

You will be asked by the insurance carriers to mail back a check with your life insurance application for one month’s premium. Essentially, what you are doing is sending in the first payment early. If you are approved and accept the life insurance, the temporary insurance check would be applied toward the first premium payment. Keep in mind that the payment amount you are initially quoted can end up being a different amount upon final decision. Your first payment may need to be adjusted in order to put the life insurance policy in force.

When you apply for life insurance and receive the application to review, date and sign, you will find a page called the Temporary Life Insurance Receipt. This receipt outlines the rules and details for the temporary life insurance. It will also tell you when the temporary coverage would begin, as well as, the circumstances of when the life insurance company would and would not pay based on the temporary coverage.

So, you may ask: Why is it a good idea to have the temporary life insurance? If you are applying for life insurance that requires full medical underwriting, sometimes it can be a lengthy process to reach a final decision. If the insurance company requires additional medical records from a doctor’s office, it can sometimes significantly increase the amount of time in between application and when a final decision is determined.

Temporary life insurance will give you peace of mind while you go through the application process. In the event you did suddenly pass away during the application process, the coverage would be in place with the temporary insurance. Again, the important point is to read the Temporary Insurance Receipt in an application and understand the guidelines of when the insurance carrier you are applying with would provide temporary insurance coverage and when they would not.

About the author: Dan Cody has been in the life insurance business for over 7 years. He loves playing a variety of instruments including the guitar, bass, drums, and piano. He also supports cancer research foundations and volunteers at local pet shelters. Dan enjoys helping customers understand life insurance, so they can find a solid policy that fits their needs. You can reach Dan at 1-800-651-1953 or DCody@Pivot.com.