There are many different types of insurance offered by the insurance company Endsleigh. One of these is life insurance, which is coverage that pays out when the insured party or parties die. Life insurance only covers the insured in the event of their death. Some believe that life insurance also can help if they are diagnosed with a critical illness. This is partially true. This depends on if additional coverage is added to the life insurance policy.
For a life insurance policy to provide benefits when a diagnosis of a critical illness is made, critical insurance coverage must be part of the life insurance policy. Without this additional coverage, those who are insured and who are subsequently diagnosed with critical illnesses such as cancer won’t see any benefits. The policy would only pay out when they pass away.
If a life insurance policy does have critical illness coverage added to it, then the policy will still pay out to the named beneficiaries when the covered person dies. Also, with the added coverage, benefits will be paid if a certain critical illness is diagnosed. Insurance companies will specify what illnesses they deem as critical illnesses covered under this policy. This can vary significantly between companies. Always find out what is covered when choosing an insurer with which to do business. Most insurers do agree that some critical illnesses would include stroke, heart attacks and cancer.
By having critical illness coverage included in a life insurance policy means that a lump sum would be given to the insured when they are diagnosed. The intent of this kind of insurance benefit is to help with medical expenses. It can also be used to make up for wages lost if the person must stop working, which is usually the case. The lump sum payment can also be used for any other expenses that may have incurred due to the diagnosis of the critical illness.
This is an insightful and concise article about covered illnesses in a life insurance policy. It helps to point out one aspect about what you should know when considering and choosing a life insurance policy.