However, some providers offer temporary life insurance coverage to give you peace of mind while you're waiting for your final policy to go into effect. The alternative to waiting or holding temporary life insurance is an online life insurance policy through a company like Ethos, allowing you to instantly secure affordable coverage without the extended waiting period.
Temporary life insurance is a form of short-term coverage some providers offer to individuals applying for a term or whole life insurance policy. It protects you and your loved ones during the underwriting period or time frame while you're awaiting a decision. You may have to complete a medical exam before securing temporary life insurance, but it's not mandatory with all providers.
In the unlikely event you pass away before your policy is approved and issued, the temporary policy will pay out a death benefit to your beneficiaries. This amount is generally equal to the amount of coverage you're requesting through a term or whole life insurance policy. Some providers cap this amount, so it's best to confirm the limit if you're considering a temporary policy.
How much do temporary life insurance premiums cost?
Premiums depend on the amount you're quoted when you apply for life insurance. Most providers assess this amount for temporary life insurance. Be mindful that your premiums could change when the final policy is issued, depending on the findings during the life insurance underwriting process.
If your application for coverage is approved, any payments made will be applied to your first month's premium. But, if you withdraw your application for coverage, refuse the final offer, or you're denied term or whole life insurance, the provider will issue a refund of the premium payment.
How long does temporary life insurance last?
Temporary life insurance is typically valid between 60 and 90 days. If the insurance provider approves your application sooner, temporary coverage ends once you make your first payment to activate the final policy.
What if your application for term or whole life insurance is denied? In that case, temporary life insurance coverage would end right away.
Here are some scenarios that would prompt the termination of coverage under a temporary policy:
There are several reasons why temporary life insurance could be a worthwhile purchase:
Temporary life insurance isn't the only way to protect your family's financial future, though. You can even skip short-term coverage altogether and get a policy today through Ethos. Our online platform offers two types of life insurance that you may qualify for:
Another plus of working with Ethos is there are no medical exams or blood tests required. You won't have to speak with a live agent to qualify for either option. Simply answer a few online questions, and you could get same-day coverage on an affordable policy from a top-rated carrier in minutes.
Don't put off getting coverage any longer. Take the first step towards securing faster, better, and more manageable life insurance online, and get started with Ethos today.