With the economic recession devastating the industries these days, I’m afraid I would be losing my job sooner or later. My wife told me that I should consider having a short term life insurance just in case. How does this compare with any other life insurances in Oklahoma?
Alexander
Oklahoma City OK
Short term life insurance, as the name suggest, is sold only for a certain period of time and thus, will provide temporary coverage for the insured. Specifically, the policy coverage is five years or less, compared to a whole term life insurance which covers the insured for a lifetime. Most of the time, a short term insurance policy costs less that 10% of the cost of a whole life policy.
Since short term insurance policies offer a temporary coverage and are cheap, many people purchase them to protect their family or businesses from an unforeseen accident or death while they are still unemployed or are seeking for a new career. The coverage of these policies can range from $25,000 to $2,000,000. The coverage can help fund the beneficiaries to set off the medical expenses, the funeral costs, and among others.
Insurance companies in Oklahoma have differing rates for their short term life insurance products. The rates to be paid by the insureds, whether one time or on monthly basis, depend on the age, lifestyle and health condition of the one to be insured. In this type of life insurance, your rate remains the same for the entire duration that your policy is active. Let’s say that you have a short term insurance with a policy period of four years. Once your policy is in effect, your life insurance rates will not change for four years.
At the end of your coverage period, you have the option to renew your policy or discontinue it. Your decision will depend on your need, or whether situation has changed for you to consider a long term insurance policy.
Another feature of a short term life insurance is that like any other term life insurance, it does not build up cash value unlike the whole term life insurance. This means that if you will not make any claims against your short term insurance policy during the duration of its term, you will not be able to receive any benefits from it.