Short term life insurance

Coverage between jobs, for special assignments or international travel

by Tony Novak  updated March 22, 2011

 

Life insurance policies are usually issued for periods of one year or longer. Today's life insurance rates are low enough that most people would not consider the need to limit coverage to a shorter period of time. However, occasionally it makes sense to take shorter term coverage. Three types of short term life insurance are available: 1) domestic term life insurance, 2) international term life insurance, and 3) accidental death insurance.

Features

• Pricing and application of short term life insurance is done online
• Enrollment support is available by telephone or e-mail
• No medical exam is required
• The application is underwritten quickly, usually within one or two days
• Evidence of coverage is immediately available through e-mail or electronic download of a certificate of coverage
• Standard coverage amounts are $50,000 to $500,000
• Minimal coverage period is one month
• The coverage period may be extended if coverage is needed for longer than originally anticipated
• Coverage may be cancelled at any time

Coverage between Jobs

Many working Americans obtain part of all of their life insurance coverage through an employer-provided group life insurance plan. Almost one in ten Americans have a gap in employer-provided insurance coverage every year. This means that while employer-provided life insurance is economical and convenient, it is not stable. A gap in group insurance typically lasts 1 to 12 months. Short term life insurance is typically issued at the same time as short term health insurance with an online application. Two of the most popular choices for short term life insurance are Guarantee Trust Life and HSBC Insurance "SmartLife".

International Term Life Insurance

International term life insurance is available through Lloyd's London and HCC Insurance Services for maximum financial security. Coverage can be customized to meet the needs of corporate or bank beneficiaries.

Accidental Death Coverage

Situations that involve additional short term risks may warrant an accidental death policy. This type of insurance is less expensive than regular term life insurance. As the name implies, this coverage does not cover death from natural causes, disease or medical conditions. Liaison Travel insurance offers international accidental death coverage for a period of 3 to 12 months in amounts up to $1,000,000.