There was one life event that inspired the design of the short term life insurance policy – unemployment. While that was the inspiration, you can use a short term life policy for other events as well. If you are at all concerned that you may not be eligible to receive unemployment benefits via the state or if you want to ensure you have something to fall back on in the even you have an unexpected loss of employment then a short term life insurance policy could be right for you.

Because, statistically speaking, the death of a young person during the short time he may be unemployed is not likely to happen short term life policies do not build a cash value account over time. You will also be treated to rather low premiums with a short term life insurance policy because the odds of you dying during this period is so low the insurers feel that it is relatively safe. You usually won’t be subjected to a health exam with a short term policy, either and as such they are considered "guaranteed issue" policies.

It is so easy to get a short term life policy these days that you can have a policy picked out, paid for, and signed (with an electronic signature that is valid) in less than a half hour. Your coverage will begin the moment your policy is paid for and you will not be subjected to answering any health questions, let alone having to undergo an examination. Your premiums can be paid monthly, quarterly, semi-annually, annually, and even in one full lump sum if you wish. Your physical copy of the policy will be mailed to you within two business days of purchase.

A short term life policy’s main concern is to provide you with benefits in the event of unemployment but they do, like any other life insurance product, carry a death benefit as well. A term life policy will pay out a death benefit when the cause of death is from absolutely anything other than suicide. An accidental death policy will only allow for payouts if you are killed in an accident that is defined within the clauses of your policy.

If you’re under the age of 45 a term life policy may be able to cover you just fine unless you want full protection for a family – then you should consider a whole life policy instead. An accidental death policy costs less in premiums than a full term life policy. Each of these will carry with them death benefits in amounts ranging from $50,000 to $250,000.

You may be able to convert your short term life insurance policy later on. What this will do is allow you to renew the policy once the original term expires with a new premium. Be aware, though, that your premiums will likely increase as you age.