There are various types of insurance, be it life, health, vehicle, furniture, among others. However, in the range of personal insurance there is a variety of policies according to the needs of the people who hire it; that is, they adapt to the needs of the client. That is why today we will talk a little about the temporary insurance policy.
A Temporary Life Insurance is one that you contract for a certain period of time. In this way, the risk coverage is limited in time. This feature allows the insured to take out one of these policies intermittently, depending on their needs.
Most of the Life Insurances that are marketed are of this modality. They are contracted for a period of one year, which is automatically renewed if there is no opposition from the policyholder or the insurer.
Renewable Life Insurance
Renewable life insurance is an example of what term life insurance would be. Companies tend to offer the service under different names, but that, in practice or benefits, would be the same.
These policies are contracted for an annual term and are automatically renewed each year, updating the price of the corresponding premium according to the age of the insured person at that time.
What are the advantages of taking out Temporary Life Insurance?
- These have the peculiarity that they can be adjusted to the needs of each person.
- It can be hired at a time when it is convenient to have it; either for carrying out a risky profession.
- Keep it in force until it is useful.
- The option as a renewable policy gives you greater flexibility to continue or not with the contract according to the needs of the moment.
These are just some of the advantages of having term or renewable life or health insurance; however, you should keep in mind that there are also disadvantages. A life insurance must support you at all times and in the face of any eventuality, accident or illness and a temporary life insurance is only for a certain time and before certain clauses according to contract specifications, so this would be a great disadvantage at the time of a family emergency situation.