CRITICAL ILLNESS INSURANCE
Many of us don’t deny that we often bury our heads in the sand when it comes to our future health, but suffering a critical illness could happen to any one of us and not being prepared could have severe consequences for our financial future.
There are some key questions that you should ask yourself, to ascertain how they could cope should the worst happen and they be diagnosed with a critical illness. For example, could you afford to meet your monthly mortgage commitments or other bills, or maintain your current level of savings? Even more importantly, could you afford to pay for the best treatment to manage your condition?
Types of Living Benefit Plans
There are four different types of insurance to cover for critical illness, as follows:
Living Benefit 10 and 20
With these plans, policyholders are covered to the age of 75. The price of premiums renews either every 10 or 20 years, though there is the option of switching to a level premium paying policy before the age of 60. The policies also benefit from a Return of Premium on Death clause.
Living Benefit 75 and 100
One of the main features of these plans is the fact that premiums are guaranteed not to increase during the life of the policyholder. Coverage is provided to either the age of 75 or 100. Eligible premiums can be refunded if no claims have been made on the policy, through the Return of Premium on Death or Surrender riders.
Return of Premium Benefits
All four of the Living Benefit plans provide options for return of premiums, as follows:
Return of Premium on Death Benefit Rider (ROPD)
All plans offer this rider, which offers the return of 100% of eligible premiums if the policyholder dies before making a claim on the policy.
Return of Premium on Surrender or Expiry Benefit Rider (ROPS/ROPX)
Under this rider, should a policyholder either reduce or end their coverage early, a percentage of their eligible premiums will be returned, subject to terms.
Living Benefit 75
There are three options, which must be chosen at the time that the policy is taken out:
- ROPS15: on or after the 15th anniversary of the policy, 100% of eligible premiums are available
- ROPS65: when the insured individual reaches the age of 65, 100% of eligible premiums are available
- ROPX: when the insured individual reaches the age of 75 (policy expiry), 100% of eligible premiums are
available
Living Benefit 100
There are two options, which must be chosen at the time that the policy is taken out:
- ROPS15: on or after the 15th anniversary of the policy, 100% of eligible premiums are available
- ROPS20: on or after the 20th anniversary of the policy, 100% of eligible premiums are available
15-Pay Living Benefit 100
There is one option, which must be chosen at the time that the policy is taken out:
- ROPS15: on or after the 15th anniversary of the policy, 100% of eligible premiums are available
Typical Illnesses that are covered (please note some policies may not include these conditions):
- Blindness
- Cancer (life-threatening)
- Coronary artery bypass surgery
- Deafness
- Heart attack
- Kidney failure
- Loss of independent existence
- Major organ transplant
- Multiple sclerosis
- Paralysis
- Stroke (cerebrovascular accident)
Choosing the right policy is important, we can help. Please contact us to figure out the type of policy that suits your unique situation.