Life insurance is a contract between an insurer and a policyholder. A life insurance policy guarantees the insurer pays a sum of money to named beneficiaries when the insured policyholder dies, in exchange for the premiums paid by the policyholder during their lifetime.
A life insurance policy has two main components—a death benefit and a premium. Term life insurance has these two components, but permanent or whole life insurance policies also have a cash value component. Many different types of life insurance are available to meet all sorts of needs and preferences.
Many insurance companies offer policyholders the option to customize their policies to accommodate their needs. Riders are the most common way policyholders may modify their plans. There are many riders, but availability depends on the provider. The policyholder will typically pay an additional premium for each rider or a fee to exercise the rider, though some policies include certain riders in their base premium.
CRITICAL ILLNESS INSURANCE
If you’re lucky, you’ve probably never had to use critical illness insurance (sometimes called catastrophic illness insurance). You’ve maybe never even heard of it. But in the event of a big health emergency, such as cancer, heart attack or stroke, critical illness insurance could be the only thing protecting you from financial ruin. Many people assume they’re fully protected with a standard health insurance plan, but the exorbitant costs of treating life-threatening illnesses are usually more than any plan will cover.
- Critical illness insurance provides additional coverage for medical emergencies like heart attack, stroke, or cancer.
- Because these emergencies or illnesses often incur greater than average medical costs, these policies pay out cash to help cover those overruns where traditional health insurance may fall short.
- These policies come at a relatively low cost. However, the instances that they will cover are generally limited to a few illnesses or emergencies.
- Covers up to 26 serious illnesses, including cancer, heart attacks and strokes, so you can focus on recovery instead of worrying about your finances.
- Benefits are paid out as a tax-free lump sum.
- Money can be spent on anything, not just healthcare expenses.
Generally, disability insurance replaces between 60% and 85% of your regular income, up to a maximum amount, for a specified time if you: temporarily can’t work. are permanently disabled due to an injury or illness.
Some common conditions that regularly qualify are:
- Slowed Walking. Knee/Hip Problems, Osteoarthritis, Poor Circulation, Foot Disorders.
- Digestion Disorders. Inflammatory Bowel Disorder, Crohn’s/Colitis, Incontinence, Prostate.
- Limited Upper Body Mobility.
- Breathing Disorders.
- Hearing Impaired.
- Cognitive Issues.