Do I Need Temporary Coverage with My Life Insurance?
If you are reading this, there is a good chance that there is at least one person in your life that you care enough about to look into getting life insurance. If I’m right, you probably already acknowledge that life insurance is a good idea. And if you do feel this way and have gotten to the point that you are going to apply for coverage, why wouldn’t you protect your loved one(s) right away? You’ve already answered the question of, do you need coverage? The answer is yes. Given that it is available, I believe that you should get the offered “Temporary Coverage”.
With any life insurance policy, you have to apply for coverage. In most cases, this involves filling out an application and either answering some medical questions or undergoing a medical exam or both. Once your application is reviewed by an underwriter, a determination is made on your application. While this process is taking place, you can elect to have “Temporary Coverage”. All you have to do is submit the estimated first month’s payment with the application.
Each life insurance carrier is going to have their own legalese regarding temporary coverage. The basic premise is pay up front and you’ll get coverage. There are articles out there written by cynical people giving reasons why not to get temporary coverage. You can question the motives of the agent “selling” you a policy or you can take ownership of the fact that you are buying a policy to protect your loved ones. Forgetting for a moment that if your application is declined you get your money back or if you decline the insurer’s offer, you get your money back. If you pass away while covered under the temporary coverage agreement, your beneficiary(ies) will receive the death benefit.
Within my first 6 months in the insurance industry, I was at an appointment, meeting with a female potential client for the first time. After completing the application and discussing payment or what some may consider prepayment, I gave the usual speech, “Protect your family from day 1”, so on and so forth. She already had her check book out but was kind enough to let me finish my spiel. When I was done, she smiled, handed me a check, and told me that there were reasons she reached out to me in the first place. Those reasons were sitting in the room next to us. The following week I got a call that I never thought I would get. My client had passed away.
Life happens. Her passing was unexpected, but because she submitted payment with the application, a check was delivered to her beneficiaries. This was only possible because she knew that her need for life insurance didn’t begin after getting a rating or waiting until the policy was approved. The need existed long before she called me. Submit payment with the application and get temporary coverage. Insure the ones you love, now, not later.
About the author: Anthony Veloso has been in the life insurance business for over 2 years. He enjoys coaching football, playing outside with his dog, and taking day trips with his wife and newly born daughter. Anthony is a strong supporter of Orphanages and Battered Woman’s shelters. He would love to put his experience to work for your family to ensure that you have the right life insurance policy. You can contact Anthony at 1-800-654-1953 or AVeloso@Pivot.com.