The Importance of Life Insurance During Transition Periods
Life insurance is important during all periods of your adult life, and this is still true during the major life transition times as well. One of the most common ways to ensure adequate coverage during life transitions is to use short term policies to get you through the transition period, and then a switch can be made to a policy which addresses your long term needs.
There can be a number of factors which can signal a transition period, and life insurance is very important during the transition for financial security and adequate coverage and protection. One transition that may occur is a job change, whether this movement is planned and voluntary or unplanned and unwanted.
If you have life insurance through your old employer it will usually no longer cover you when the employment is no longer valid, but you may not be eligible for coverage at your new place of employment for three to six months or even longer. This transition can leave a gap in your insurance coverage, and a short term policy can help you bridge the gap. This ensures that even if you pass away during the transition period, your family will still be protected financially.
Another transition occurs during divorce. If you are covered under a life insurance policy by your soon to be ex, once the divorce is final you may no longer be eligible for this coverage. A short term or temporary policy may be a wise idea under these circumstances, until you can determine the best policy and whether you can get this coverage through your employer or not.
With some employers, if it is not an open enrollment time you may have to wait for months to be eligible for life insurance, and you do not want to risk going without coverage for this long. You can choose a traditional life insurance policy or you can choose one which only covers accidental death. An accidental death only policy is usually a lot less money, but does not pay benefits if death occurs from natural causes.
An accidental death policy may make sense if you are young and in good health, because you have a very low risk of dying due to a medical condition or disease. If you are older these options are not such a good idea though; a better option is to choose life insurance which will cover natural or accidental death.
During a transition period your need for life insurance coverage does not stop just because your life is changing, and during many transitions it is more important than ever to be insured in order to protect your loved ones financially. Whether you choose a short term policy or decide to go with permanent coverage that will build a cash value, it is crucial to make sure that you have the right coverage types and amounts, no matter what is going on in your life.
It is also important that you evaluate your life insurance coverage during each transition period, to make sure your coverage is the right type and the right amount. Changes in your life may mean you should change your insurance amounts to reflect these transitions accurately. Even the retirement of your or your spouse can be considered a transition period, and may cause you to change your insurance amount or types to better meet your financial goals.
This insurance is protection against financial hardship caused by your death, and as your financial needs and assets change so will your ideal life insurance requirements.
One of the best ways to get the insurance policy that you want and need without paying too much is to compare life insurance quotes online. Whether you are looking for short term insurance quotes just to cover you through a short term transition period or you want a policy that will cover you for many years, online life insurance quotes can help. A life insurance policy with the same coverage amount and relevant factors will vary in price, depending on the company offering the policy.
Online quotes will let you compare and evaluate each possible policy and find the coverage you are looking for at the right price to fit your budget as well. A transition period should never mean being at an increased risk for financial hardship, and there are a number of life insurance types that can help you meet your transition needs. Without adequate life insurance coverage, who will pay the bills and help support your loved ones, pay burial expenses, or take care of any debt you leave behind?
Life insurance is very important, and this is even truer when you are in a transition period because of the increased risks you face.