Options To Consider On Your Life Insurance Policy
When you are making decisions about what life insurance policy to buy you will have to think about more than just how much coverage you want. There are extra options that you will be offered and you have to decide if they are worth adding onto your policy or not. Some options may be a good deal, but others could be a bad choice. Learn more about the options you may be offered and what you need to know before making your decision.
Critical Illness Coverage
Critical illness coverage, as the name suggests, is a special option that allows you to make a claim on your policy should you be diagnosed with a chronic illness that is listed on your policy. The list of illnesses will differ from company to company and may differ from policy to policy. You will have the option of adding this onto your life insurance policy or taking out a separate policy.
If you feel that you need this type of coverage then it may be wise to go with two separate policies. The reason is that once you make the critical illness claim, your policy ends. If you have it tied in with your life insurance policy then you will no longer have that coverage. However, adding it onto your life insurance policy will save you money on your premiums.
Waiver of Premium
The waiver of premium option offers you additional benefits if you were to lose your job, have to take off work due to injury or illness or be laid off. If you take this option then in the event that you cannot work, the insurance company will pay your premiums. This means that even when you can't afford to pay your premiums due to not working, you won't lose your policy. This is well worth considering, especially if the economy is shaky and there is a risk that you could lose your job or if you work in a very hazardous field where injury could be highly likely. Another benefit of the wavier of premium option is that it will not add much extra cost to your policy.
Indexation allows you to get an increase in your policy as dictated by inflation. With this option you will get a raise each year based upon the economic situation. It is automatically done by your insurance company for you each year. Keep in mind, though, that if you choose indexation that not only your coverage amount rises, but your premium will also.
These are the top three options that you may be offered to add onto your life insurance policy. You may be extended other options. Consider any option you are giving carefully. You want to be sure that it makes financial sense and that it is really something that you need.
by: John Kirzno