Temporary insurance, as the name suggests, is good for temporary cover. While it carries no benefits of cash value it is a useful investment to make for the time being. Temporary plans can be cancelled at any time for any reason.
The most basic insurance is the temporary plans. Another one is the permanent plans. Temporary plans are for a minimum period and are therefore, called temporary insurance plans in the US. While in the UK the term insurance is called term assurance.
It is important to take note, when you are going for a temporary plan, if your insurer will grant you policy renewal after its expiry. You can then be sure of financial protection even when you do not have insurance due to some reason and benefits you despite its temporary nature.
You should, as a matter of fact, ask the insurer for such assurance of renewal. Term plans do not provide cash savings and only passes on benefits of finance, on your demise, to your beneficiaries. Therefore, even if the cost is less, term plans are not attractive to the buyer.
Term plans serves as a useful tool to your beneficiaries offering death benefits of finance. Except for this there are no other benefits to the policyholders in their lifetime. Since insurance is not a prize or an acquisition to get when the holder dies and the life of a human cannot be measured in economic terms of value.
When you apply for insurance on your life, temporary cover is useful in its own way. You get worthwhile comfortable benefits even from an initial investment plan of premium payments. Then too, your premium payment is returned to you in case the insurer does not accept your policy or in the event of your withdrawing your purchase offer of a policy.
Insurance on life is most vital because of the provision of funds to your family on your demise. Temporary plans are also called pure plans and do not provide you any cash savings. Such plans allow you the benefit of canceling or withdrawing your policy for any reason. While, permanent plans accumulate your premium payments as cash savings and therefore reduce risks of the amount for the insurer. However, a big problem with such plans is that you cannot withdraw the plan for any reason.
Therefore, if you are planning to buy a policy you should go on the internet and search online for feasible and flexible temporary coverage plans.