Do you know when your life insurance will pay out? Some policies only pay out if the insured dies in an accident, but you may also want to take out a policy that covers you in other circumstances, such as if you are diagnosed with a serious illness or have to apply for disability benefits.
As the name suggests, these are life insurance policies. Their main function is to pay out in the event of an accident or death. This is done so that, if something happens to us, our family and friends can receive a large sum of money, which they have pre-contracted with a certain company. In this way, we help them to continue with their payments and plans for the future, even if we no longer exist.
Accidents, illnesses… This includes death from any cause. But in all other cases, is life insurance paid for? You can choose a traditional insurance, which only compensates your beneficiaries in case of death, or you can add additional coverage to compensate in other circumstances.
If you need disability insurance
If the insured dies as a result of an accident, the traditional insurance policy pays money to the beneficiary (you can insure a spouse, a child, a friend ……). An indemnity is paid. However, there is also disability protection, i.e. if you have to apply for a disability pension, you can get the money yourself.
If you are diagnosed with a serious illness
Another advantage that can be added to life insurance is coverage in case of critical illness. One example is cancer, which is unfortunately widespread. About 275,000 new cases of this disease are diagnosed each year in the United States alone. And each affected family member has to bear the cost of about 40,000. Families may have to take time off work to care for the patient, travel to the hospital for treatment and change their routines. And all of this comes at a cost.
Critical illness insurance is a serious illness (cancer, multiple sclerosis, heart disease ……). If you are diagnosed with an illness, you can take out this insurance yourself to cover the costs.
Choosing the right insurance for you
As you can see, life insurance can be adapted to your needs and there are many situations in which it can be convenient. For example, if you live alone, it is very useful to have disability insurance. And if a family member has suffered a serious illness, adding this insurance can be the right choice.