Temporary life insurance — sometimes referred to as a temporary insurance agreement (TIA) — is a type of short term life insurance offered only during the life insurance application process. If you die before your final application is approved, the temporary policy pays out to your beneficiaries.
How does temporary life insurance work?
Temporary life insurance provides coverage before your term life or permanent life policy becomes active. The life insurance application process can take up to four to six weeks from the time you complete your paperwork to the time your coverage goes into effect, so temporary coverage can protect your loved ones during that window.
You’ll have the option to add temporary coverage on your initial life insurance application, as long as the insurer offers this feature (most companies do).
The death benefit of a temporary policy is typically equal to the amount of coverage for which you’ve applied, up to a limit (usually $1 million).
Your temporary life insurance coverage can begin as soon as you sign your application and receive your temporary insurance receipt, but the exact timeline varies by insurer.
When does temporary life insurance end?
Temporary life insurance coverage ends after one of the following occurs:
A set period of time passes after the application is filed — usually 60 to 90 days.
You request a refund for the premium or terminate your proposed coverage.
You are declined for coverage.
Your policy becomes active.
There are also a few exceptions in which your temporary coverage benefits won’t apply.
If you die by suicide during the temporary life insurance period, your beneficiaries likely won’t receive the death benefit.
The same is also true if you misrepresent your health and die due to a condition that would’ve otherwise made you ineligible for temporary life insurance coverage.
Learn more about term life and permanent life insurance
Why should you buy temporary life insurance?
If you don’t currently have life insurance and die before your policy’s effective date, your loved ones won’t receive any financial support. Temporary life insurance protects your family during that coverage gap.
However, if you need your actual policy to go into effect as soon as possible, you should consider no-exam life insurance or instant decision life insurance, which speeds up the application process by skipping a medical exam.
You can work with an independent insurance agent to find the best type of life insurance for your situation.
Learn more about the differences between term life and whole life insurance
How much does temporary life insurance cost?
Your temporary life insurance premium is based on an initial quote from the insurance company, which will likely reflect the premiums for your final policy. For instance, if you were quoted $30 per month for your coverage, your temporary coverage would cost $30.
Your official premiums are determined during underwriting and can be different from your original quote.
If the insurer finds new information that would impact your insurance risk, your final premium could change.
Once the company sets your final rate, the payment you made for temporary life insurance will be credited toward the first month’s premium for your actual policy.
Some insurers don’t require any upfront payment at all — you’ll just need to provide your banking information, so they can draft one premium payment in a worst-case scenario.
Learn more about the life insurance underwriting process
How each insurer treats temporary coverage
Each insurer has slightly different guidelines when it comes to temporary coverage. Check out the table below to get an idea of how much temporary coverage you could get from the top life insurance companies.
Life insurance company | Temporary policy |
|---|---|
Up to $500,000 in coverage | |
Up to $1 million in coverage | |
Not available | |
Up to $1 million in coverage | |
Up to $500,000 in coverage | |
Up to $1 million in coverage | |
Up to $1 million in coverage | |
Up to $1 million in coverage | |
Up to $1 million in coverage | |
Up to $250,000 in coverage | |
Up to $1 million in coverage |
Methodology: Temporary coverage limits are based on carrier guidelines provided by 11 life insurance companies that offer policies through the Policygenius marketplace (Brighthouse Financial, Corebridge Financial, Foresters Financial, Legal & General America, Lincoln Financial, Mutual of Omaha, Pacific Life, Protective, Prudential, Symetra, and Transamerica). Some restrictions may apply based on your age, location, health, and the amount of coverage.
Do you need to take a medical exam to get temporary life insurance?
Most life insurance companies require the completion of the medical exam for temporary coverage to become active. The medical exam is a common part of the life insurance application process — it’s just like an annual visit to your doctor.
However, Policygenius works with five life insurance companies that can offer temporary coverage without a medical exam.
To activate temporary coverage with these insurers, you’ll just need to provide your payment information and sign the application.
Legal & General America, which also does business as Banner Life and William Penn
Is temporary life insurance worth it?
In many cases, temporary life insurance is worth it because of the low cost and peace of mind they can provide. By paying your first premium early, a temporary life insurance policy ensures that your loved ones can still get a death benefit — even if you die before completing the life insurance application process.
Some insurance companies even offer temporary coverage at no charge — you just need to provide your banking information to keep on file.
If you’re not sure if your insurer offers temporary coverage, you can ask your life insurance agent during the application process, and they’ll help you find a company with this offering.
