Term life insurance is a great tool that can provide financial protection to family members if a main income earner passes away. It is also a great tool for dual income earner families, where both spouses supply needed income to the family.

Term life insurance is cheap enough that it makes sense to obtain coverage for relatively small periods of time. The price of a term policy is dependant on the length of the term. Comparing two identical scenarios, where both policy holders are the same age, and all factors are the same, the policy holder that buys a shorter termed life insurance policy will pay less.

For this reason it would make sense to purchase a term life insurance policy when a short term risk will be present, and the risk ratio is heightened for the policy holder.

Here are times when a term life insurance policy should be used for short term events.

Short Term Event #1

Overseas trip. While most forms of travel today are safe, there is always an increase in risk when anyone travels. This risk is augmented when any overseas travel is undertaken.

Short Term Event #2

Travel to a third world country. Besides the increased risk due to international travel, there is also a greater risk due to crime, political instability, and health conditions.

Short Term Event #3

Pregnancy. Medical advances have made the pregnancy and child birth process safe. But there are still instances when due to natural or man made conditions things do not progress well. Since there is an added risk to the future mother’s life, it would make sense to purchase a term life insurance policy. The need to do so is even more important if the family is dependant on her earnings.

Donny Lowy manages http://www.americanlifedirectonline.com an online term life insurance portal.

Donny Lowy