Additional optional benefits you will get under a term assurance policy

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Many life offices have a number of options which can be added to their standard policies. These include:

Terminal illness benefit – if the life insured becomes terminally ill, and in the opinion of the life office their life expectancy is less than twelve months, then the sum inured is paid out and the policy ends.

Waiver of premium – the life office waives the policy premiums (normally after 26 weeks of incapacity) when the life insured is too ill to undertake their normal occupation or, in some cases, another suitable occupation. With the provider paying the premiums, the protection offered by the policy is maintained.

Critical illness cover – the sum insured is paid out if the policyholder is diagnosed with a specified critical illness. The cash lump can then be used to help maintain their lifestyle, make alterations to their home and help to avoid financial difficulties.Increasing cover – this option enables the policyholder to increase their cover by certain amounts at certain times without further medical evidence, such as on marriage, the birth of a child, a house move or an increase in an expected Inheritance Tax (IHT) liability. These are often termed guaranteed insurability options, as they give the policyholder the right to further cover in the future if required

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