Some life policies have optional extras:
1. Waiver of premium
If you suffer from a temporary total disablement because of illness or injury, the insurance company will pay your premiums to maintain the benefits under the policy. There are usually time limits stated in the policy for the duration of the disablement.
2. Critical Illness
This provides cover against the risk of you having a serious illness such as a heart attack or cancer. If you develop one of the illnesses listed in the policy a lump sum will be paid. Some insurers offer a regular income for a set period as an alternative to a lump sum payment. This type of insurance can be bought on its own or as an addition to whole life, endowment or term insurance. The following could be the illnesses accepted under the policy: heart attack, coronary artery bypass grafting, stroke, life threatening cancer, kidney failure, major organ transplant, paralysis, blindness, severe burns or a coma.
3. Accidental Death Benefit
This benefit provides additional cover so that if you were to die as a direct result of an accident the insurance company will pay this benefit in addition to the main benefit. The amount of cover under this accidental death benefit can be up to the same amount payable under the main benefit thus doubling the amount payable in the event of death.
4. Permanent Total Disability
This option guarantees the payment of a selected sum assured in case of permanent total disability after a waiting period of twelve months. If you are diagnosed as being partially disabled, the benefit is a percentage of the sum assured depending on the severity of the disability whilst you will remain covered for the rest of the sum assured. The rest of the life cover will remain as the sum assured on death.
These “extras” are sometimes called “Rider” policies because they run alongside the main cover which could be a whole life or endowment.
You should always check with your insurance representative about these “extras” and whether they are suitable for you.