Job Transition? Choose Short Term Life Insurance

Short term life insurance policies have become the most popular life insurance type on the market because it covers only a predetermined period and is inexpensive. In the case of a job transition, the term of insurance is usually only a few months. Since the risk of dying is small during the typical window of time covered by short term life insurance, insurers perceive little risk. Short term life insurance can cost only 10% of whole life insurance. The inexpensive nature of short term insurance makes it a highly realistic option for anyone in a job transition. The process from application to approval to coverage is swift - as little as a matter of days - because there are no insurance physicals to worry about either.

Insurance companies offer both regular and accidental death short term life insurance policies. Policy holders on the younger side generally opt for only accidental coverage because, for them, the chances of dying an accidental death are greater than dying of a health-related cause. Accidental death short term life insurance is cheaper than regular short term life insurance.

A person in a job transition has to consider the amount of coverage they are likely to need. Short term life insurance should cover the essentials in the event of your untimely death during a period of job transition. Know what your circumstances are and will be during the period of time you want protected. If your children are in school and your spouse would have trouble with school fees in the event of your death, you want enough insurance so that there is no disruption in their schooling. If your spouse would have difficulty meeting the mortgage payment without you, make sure you purchase enough short term life insurance to protect the mortgage. A typical short term insurance policy is between $50,000 and $250,000.

Your previous insurance carrier is a good place to look first for a short term insurance policy. Because of their prior relationship with you, they will be in the best position to arrange the right short term insurance policy suited to you and the needs of your family, and they should be able to set up a policy with the best payout and lowest premium as well.

Remember that short term life insurance is a temporary solution for a temporary situation. It is not a good long term substitute for permanent life insurance.

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