Life insurance is a purchase that many people make when they are facing illness or even when their family is expanding. Affording loved ones a safety net is something that is often prized and in the event of some tragedy, there is some financial help in the form of a life insurance policy. It can be debated whether it is a vital part of monthly expenditure or an unnecessary cost. However, there is a time in life when it becomes an absolute must have and that is when a serious, life threatening illness prevails. There are many ways to approach this subject , undoubtedly, the best way is to face it in a practical manner. So read on, put emotion aside and work out which is the best option for yourself or a person you are close too.
The Three Types of Insurance
There are three types of insurance policy that can be purchased. Term insurance is a policy that is taken out for a fixed amount of time. This is fairly simple and can often be a useful short term policy, as the shortest period of a Term policy is a month. Of course, one of the negatives of the policy is that the policy gives no return if the consumer outlives the policy.
Whole of life insurance is a solid policy that lives up to it’s name. It is a good policy to have if the objective is to pay out a sum of money after death. One of the downsides to a whole of life policy is that the premiums can go up. This tends to happen when the policyholder has reached the age of 60 years and this can continue every five years.
An endowment policy is a more complex method of insurance as it combines life insurance with a savings policy. The costs involved are usually higher but one option is to have a “with profits” policy. This will reward the holder with a company bonus, providing the company has made a profit.
It is possible to purchase critical illness cover – this is an optional extra on the whole of life policy. If a critical illness is developed by the policyholder, then if the disease is covered by the policy, a payment can be made.
Looking for Life Insurance After Diagnosis
Life insurance purchase after been given a diagnosis of cancer is an important thing as it can offer protection for your loved ones if the disease prevails. There are different types of insurance, in this situation, each depending on the individual’s diagnosis. The insurance companies will offer their policy depending upon the type of cancer and how far the disease has spread. They gather their information from several sources. The individual seeking the insurance may be required to have an independent medical examination by a medic from the insurance company. The other option that is frequently used is by contacting the doctor’s involved in the individual’s care and accessing medical records. Although this can be seen as invasive, the individual concerned must give permission for this to happen and it is completely normal for this request.
If cancer has been experienced and is in remission, that is when an insurance company may offer an insurance policy. However, it is usual for the policy to be offered only after two to three years without any further cancer symptoms.
If the cancer is no longer treatable, the insurance companies will not be in a position to insure that person.
Already Have Life Insurance?
This is obviously great news as typically, the policy should be honoured and it really should be a straightforward process. When purchasing the insurance , in order for the policy to be processed without any hinderance, the consumer must have been truthful regarding their health status at the time of purchase.
There are “optional extras” available in insurance policies that allow the person with cancer to pay the premiums. This is an extremely helpful option when paying for life insurance becomes more necessary when dealing with cancer.
One way of navigating through the insurance maze is to use a comparison website to get a feel of the costs that could be involved in these types of policy. A financial adviser is also someone that could help to make the decision clearer.