What is temporary life insurance?
Temporary life insurance is protection for a specific period of time. We’re talking 10, 20, or 30 years. It’s the most affordable because it provides a death benefit. Term insurance, a form of temporary life insurance, expires after a certain term (i.e. 10, 20, 30 years) that’s why it’s called term insurance. It’s for those with limited budgets DURING times of “high financial responsibility”.
Temporary Life Insurance Definition: It’s literally protection for a specific period of time.
We’re talking 10, 20, or 30 years.
It’s the most affordable because it provides a death benefit.
Really, one of the main reasons we buy life insurance is for the death benefit. In case anything happens, your beneficiaries get some money back.
Term insurance expires after a certain term (i.e. 10, 20, 30 years) that’s why it’s called term insurance.
It’s for those with limited budgets DURING times of “high financial responsibility”.
Temporary Life Insurance is for “High Financial Responsibility”
What’s “high financial responsibility?”
Well, here are some situations that fall under high financial responsibility:
- You got young kids and a spouse
- You got a mortgage
- You’re in school OR your kids will be in school
- 20–30 years is enough to put your babies through college OR to soften the financial blow.
- You’re running a company
- Literally, term is good because you probably won’t run the company forever.
- You’ll probably make an exit or sell it at some point. I feel that, these days, that’s the main goal.
Imagine the scenario where you have a baby and the next week you’re struck and killed in a car accident. If you had term insurance for 30 years, your baby will have school taken care of and the insurance would’ve taken care of them until they’re 30.
Temporary Life Insurance Cons
Here’s a list of cons for temporary life insurance:
- You must renew it if you still need it
- Older you are, the more expensive it is.
- You need to qualify medically. If you don’t, they won’t insure you.
- There’s “guaranteed insurability” term policies. They take you regardless of medical reason. It just costs MORE.
Why Get Term?
It’s like when you’re a teenager and you have a girl or guy alone in your room. Things will happen. If you don’t act responsibly and use protection, you put yourself at risk for something unexpected to happen.
This is kind of a weird place to end it, but it’s where we’ll end it. Like you should use protection when you’re about to have fun, you should also have protection when it comes to living your life.
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