Definition: The term "a short-term insurance" refers to a type of life insurance policy that is purchased for a specified period of time, typically between 30 days and 12 months, from an insurance company. This type of coverage can be tailored to provide financial protection during times when regular payments would not be possible due to unforeseen events or circumstances. The key features of short-term life insurance are: - A guaranteed premium payment: The policy will automatically deduct a fixed amount from your account each month. - No waiting period: Once the policy is purchased, it does not require you to wait for months or even years before receiving coverage. - Automatic renewal: You can purchase an annuity instead of renewing your policy every year, which means that if you are able to make payments within the specified time frame, you will receive the full amount of your premium payment without any waiting period. - Flexibility in coverage: The policy may cover various types of life events, such as accidents or illnesses, and may have a different duration for different plans. - High premiums: Short-term policies can be more expensive than regular long-term policies, but they offer protection during times when you are not able to rely on your income. In summary, short-term life insurance is an affordable alternative to long-term life insurance that provides financial protection during times of unexpected events or circumstances.
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