Adding Extra Cover For Major Illness To Your Life Insurance.

Life insurance plans are fairly simple "" they are designed to pay a lump sum if

the insured person dies or is terminally ill (which for most insurers means that the person is likely to die within 12 months). However, in many cases, a person can suffer a major health issue, but not actually pass away "" for example it"s common for a person to live for a very long time after suffering an issue like cancer or stroke.

For this reason, people often choose to extend their life insurance by adding trauma insurance. Trauma insurance (also known as "serious illness" insurance or "critical condition" insurance) will pay a lump sum if you suffer a major health problem. Each policy will give a list of the health issues it covers, and if the condition suffered is on the list, the policy will pay out. The list of conditions covered by trauma insurance varies, but will usually include things like heart attack, cancer, stroke, paralysis, etc.

This kind of insurance can be vital. The financial impact of suffering a major health problem can be huge "" sometimes greater than death, because not only is the insured person suddenly unable to earn an income, but they also need to be financially supported by others.

When adding this kind of insurance to your life insurance you can usually choose to have an "accelerated" or "stand-alone" payment. The difference is simple "" an accelerated payment means that the trauma payout will be an early payment of your life insurance, while the stand-alone payment will be totally separate, and not affect your life insurance at all. For this reason the accelerated payment will usually be slightly cheaper than the stand-alone payment. There is no single "best" option "" which to use will come down to your individual situation and budget. This is a good point to discuss with your life insurance adviser "" they will be able to show you the costs and help you to decide.

by: cisamitesh

POST COMMENT

Blue Cross Blue Shield of Florida - Student Health Insurance Plans Purchasing Economical California Health Insurance Blue Cross Blue Shield of Florida - Florida's Leading Insurer Blue Cross Blue Shield of Florida - Health Insurance Plans Blue Cross Blue Shield of Florida - Child Only Health Insurance How One Is Covered With Insurance Nz Blue Cross Blue Shield of Florida - Blue Select Health Insurance Factors That Control Life Insurance Rates Health care insurance insurance at a good age group, the way to preserve online right now Insurance for phones deals Insurance for phones for peace of mind Insurance for phones today iPhone 3G insurance and get paid for damage