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Last Updated on 10 December 2019

Life Insurance Covers More Than You Think!

Are you in the process of comparing life insurance policies? If you have a spouse or children, this is often the reason people start to consider life insurance. Even if you don’t think you can afford coverage, it makes sense to look into it. This type of insurance is not always as expensive as many people believe.

On the surface, it is simple to think that life insurance covers nothing more than your life. In other words, if you pass away your beneficiary will receive a death benefit. Although this is the principal coverage associated with a life insurance policy, it is far from all that you can get.


Critical Illness Cover

What would happen if you developed an illness that temporarily disabled you? Fortunately, many life insurance plans also offer critical illness coverage, also known as trauma cover. For example, if your life coverage is $1.5 million, you may receive critical illness cover of up to $500,000. How does that sound to you? This is an added benefit of life insurance that many people never think about. Ask whether the policies you’re looking at include this cover, if it appeals to you.

Permanent Inability to Work

A worse experience than a temporary illness or injury would be one that permanently prevents you from working. Not only would you have to deal with the physical pain and mental suffering of your medical condition, but your inability to work could put a huge financial burden on you and your family, too.

A life insurance policy may include coverage against total and permanent disability (TPD). Much like critical illness cover, you can receive a sum of money if medical professionals confirm that you are permanently disabled and no longer able to work. This can go a long way in helping keep your financial situation straight, and allow you to maintain a fair standard of living.

Questions to Ask

Shopping for life insurance can be simple enough. That being said, there are some questions you need to ask during your life insurance comparison to ensure that you get a policy that works for you. Along with this, asking the right questions will make it easier for you to pinpoint the company that offers the best rate. Try some of these:

  1. How will my age affect my premium?
  2. If I have an existing health problem, how does this affect the cost?
  3. Can you explain the type of coverage I am getting with my policy, including any critical illness and disability cover?

As you can see, life insurance may cover more than you think. If you are ready to buy a policy, make sure you know exactly what you are getting for your money – you may find that there is more than a simple death benefit. The more value the policy offers, the more peace of mind you will have.

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