If you already have Life Insurance you need to know about this

If you don’t have life insurance then you probably want to know about this…

A pretty standard feature of most life insurance policies today is something that none of us really like to talk about: Terminal Illness Benefit.  It is a way of paying out the life insurance while you are still alive if you have been diagnosed with a terminal illness.

Nobody actually wants to claim on their life insurance.  Not ever.  The sad reality is that many people aren’t fully prepared for the financial impact on themselves and their families if they are diagnosed as being terminally ill.

What is even more sad is many clients forget about this benefit in their life insurance policy in their time of highest stress…and it is there waiting to be used.

Of course one of the things to be aware of is that often when somebody has been diagnosed with a terminal illness and the life insurance benefit is paid out, much of the insurance money goes on trying to provide the best possible treatment and care.  That is perfectly logical, reasonable and to be expected.  It does often present an issue for the surviving family though.

Insurance funding which was set up to clear a mortgage for instance gets used to pay for medical treatment instead, and suddenly the family finds itself in a position where despite having the insurance to begin with, it just wasn’t enough.  The question we urge clients to consider is: will there be enough money “left over” to meet your family’s needs after your policy has paid for any costs resulting from a terminal illness?

It is a great feature in a life insurance policy, and it is often the difference between clients having a good chance of fighting a terrible illness or not.  It is usually a built-in feature these days (so they don’t charge you any extra premium for having it), but it does mean clients need to think perhaps a little more carefully about getting their sum insured at the right level.

Want balance in your life, ensuring you have the right amount of everything?  Share your hopes and dreams.  Plan your future and let me help you make sure you have peace of mind along the way.

Nimalka Perera
Business Development Manager
New Vision Financial Services

Plan your future and let us help you have peace of mind along the way.