A short term life insurance policy is generally thought of as term life insurance coverage that comes in terms of 1, 5 or 10 years of life insurance.
One year Term, or "Annually Renewable Term", can be helpful for someone in between jobs or some other need for very short term life insurance coverage.
However, one year Term will go up in price each year when you renew your policy, and sometimes you need to re-qualify every year depending on the insurance company requirements. So locking in a longer term of 5 or 10 years is much easier and more cost effective if you need more than a couple years of life insurance protection.
Five year Term life insurance is hard to find, and thus the prices are not as competitive as one might expect. Since there is no penalty to drop Term life insurance coverage (cancel), you might as well take the longer term of 10 years, and then just cancel your policy if you don't need it for the whole ten years.
Ten year Term life insurance policies are common and competitively priced.
Again, if you need longer coverage, it can cost less to lock the rate in for a longer term of 15 or 20 years, while you are younger and your health is good. But if you are going for short term life coverage, 10 or 15 year Term can be a good way to go. Learn more about short term life insurance.
NEW! - Here's How to Buy up to $350,000 of Term Life Insurance Online without any Medical Exam
One year Term, or "Annually Renewable Term", can be helpful for someone in between jobs or some other need for very short term life insurance coverage.
However, one year Term will go up in price each year when you renew your policy, and sometimes you need to re-qualify every year depending on the insurance company requirements. So locking in a longer term of 5 or 10 years is much easier and more cost effective if you need more than a couple years of life insurance protection.
Five year Term life insurance is hard to find, and thus the prices are not as competitive as one might expect. Since there is no penalty to drop Term life insurance coverage (cancel), you might as well take the longer term of 10 years, and then just cancel your policy if you don't need it for the whole ten years.
Ten year Term life insurance policies are common and competitively priced.
Again, if you need longer coverage, it can cost less to lock the rate in for a longer term of 15 or 20 years, while you are younger and your health is good. But if you are going for short term life coverage, 10 or 15 year Term can be a good way to go. Learn more about short term life insurance.
NEW! - Here's How to Buy up to $350,000 of Term Life Insurance Online without any Medical Exam
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