Which Of The Following Is Not A Type Of Temporary Insuring Agreement

The premium paid for temporary coverage is essentially a down payment. Once your policy has been approved, the payment you made for term insurance will be applied to your first month`s life insurance premium. If you decide not to use the policy or if the insurance company refuses coverage, your initial premium for temporary coverage will be refunded. The cost of your term life insurance is usually the first month premium for the insurance coverage you are applying for. Because you have temporary insurance coverage before you take out the insurance process, the premium you pay is based on your initial life insurance offer. Just like life insurance, the offer is based on your age, weight, smoking, status, health and coverage needs. For example, when an applicant receives a “temporary insurance policy” for his or her life insurance application during the insurance policy, the applicant receives immediate life insurance coverage during the insurance process. In this scenario, the applicant is considered insured, whether in fact considered insurable or not. Maximum insurance coverage depends on the insurance company you are applying for. Each company has its own maximum coverage limit for temporary insurance policies.

The benefit payable under term life insurance is the lowest amount of insurance or the limit allowed set by that insurer. Most Canadian life insurers offer either up to $500,000 $US or up to $1 million in term life insurance. During this wait, you may think it is wise to have some kind of coverage. Fortunately, you can easily add term life insurance to your application. Once you have made the big decision to buy life insurance, it is wise to apply for an TIA or term life insurance. This temporary coverage is offered virtually free of charge, as the premium received after policy approval is applied to the first month`s premium.