Choosing Temporary Insurance with Life Insurance Applications
Quick Life Insurance While You Wait

Many clients ask the question, "Do I have to send in a check or submit a payment to the term life insurance companies with my application?" The answer is no, as a client you are not required to submit any form of payment to the term life insurance company until your application is accepted. The reason one would decide to submit payment with their life insurance application is to obtain temporary quick life insurance coverage from a life insurance company during the life insurance application process.

Find out more about obtaining quick life insurance.  

What does Temporary Insurance mean? The application process with most term life insurance companies can take 4 to 8 weeks to complete, if medical records are requested. By obtaining temporary quick life insurance the proposed insured (client) gets quick life insurance during the application process. If the proposed insured passes away (with the exception of committing suicide) during the application process and their application is eventually approved by the term life insurance company, the beneficiary listed on the life insurance application would receive the insurance coverage amount. When you submit a payment for temporary quick life insurance, coverage will start on the date of the Temporary Life Insurance Agreement.

The reason it is referred to as "temporary" insurance or coverage is because this payment is only good for a total of 90 days. If for some reason the term life insurance company doesn't approve the application within 90 days of signing the temporary insurance agreement, the client will be refunded the entire life insurance premium amount and will no longer be covered until after their application is approved and policy is placed inforce. Note that this kind of quick life insurance is not offered by all term life insurance companies, so you should check with your agent.

If a client would like to submit a premium with their application in order to obtain quick life insurance here are a few helpful reminders:

1. The client is required to send in the entire premium mode payment. For example, if they are paying annual, they will send in the total annual premium payment in order to receive temporary quick life insurance.
2. Checks must be made payable to the life insurance company.
3. For most term life insurance companies: The Temporary Life Insurance Agreement, Check, and Application must be dated the same day in order to receive quick life insurance coverage.

There are exceptions to being eligible for quick life temporary insurance. Most term life insurance companies have coverage amount and age maximums when offering Temporary Insurance coverage. The coverage amount and age maximums of the quick life insurance policy vary by term life insurance companies and your agent can provide you with the details on each life insurance company.