We are independent & ad-supported. We may earn a commission for purchases made through our links.

Advertiser Disclosure

Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.

How We Make Money

We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently from our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What is Temporary Insurance?

By Shannon Kietzman
Updated Feb 01, 2024
Our promise to you
WiseGeek is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At WiseGeek, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

Temporary insurance is also known as term insurance. It is a type of insurance that has benefits only after the policyholder has died, assuming payments on the policy were paid and uninterrupted at the time of death. These benefits are in the form of cash given to the person named as the beneficiary on the policy.

Despite its name, temporary insurance can be a long-term plan taken out for anywhere from five years to as much as 30 years. Should a policyholder live beyond the years of the temporary insurance plan they signed up for, the policy ends and does not retain any of its value. In addition, a temporary insurance plan does not build equity. Should the policyholder pass away during the term of the temporary insurance, however, the beneficiary receives the full value of the policy.

There are some insurance companies willing to renew a temporary insurance policy after the initial term is complete, but there is a cost associated with each renewal. Most of the time, the policyholder decides to discontinue the policy after the term is completed because it is too expensive to continue.

In order to qualify for a lower rate on a temporary insurance policy, a person has to provide evidence of insurability. The less risky a lifestyle the person lives, the lower the rates for the temporary insurance will be. For example, a smoker, a person who is overweight, or a person who is ill will generally have to pay a higher rate for temporary insurance than someone that does not have these characteristics. Similarly, certain occupations, such as being a pilot or a police officer, are associated with higher insurance rates.

Most people take out a temporary insurance policy in order to provide for their children in case of their death. Often, parents select a temporary insurance policy that will be in place until their child or children are adults and old enough to care for themselves. Some people also take out a temporary insurance policy because the premiums are lower than those of permanent insurance policies. Temporary insurance can also help make it possible for a person to receive a home mortgage, car loans, and other loans requiring proof of insurance.

WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.

Discussion Comments

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.