Option and Rider of Critical Illness Insurance

2008-10-12T06:30:00.000-07:00

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As we mentioned in previous article, critical illness insurance is a type of insurance which will pay a lump tax free benefit to the insured if he is diagnosis of one of the critical illnesses covered by the policy. The benefit is intended to help insured persons maintain their quality of life and financial independence after suffering a life-threatening illness. In this article, we will discuss the most common options and riders offered with critical illness insurance.

Some insurers may not offer all of these options and coverages may differ somewhat from those discussed here.

1. Return of premium

Generally, this rider provides for a return of all premiums to the beneficiary when the insured dies.

There is often no additional charge for this rider. However, some insurers may charge a small additional premium.

2. Pay back of premium ider

This rider provides for a refund of all premiums at the end of the policy if there is no claim.

Many policies offer this option only where there is a level premium to age 65, 70 or 75. Other types of policy may require to pay an additional premium for this rider and it can usually only be purchased at the time of issue of the policy. Some insurers will pay a stipulated rate of interest on the premiums, in addition to the refund of premiums paid.

3. Children Rider

Some insurers offer coverage to children of the insured between the ages of 2 - 17. In some cases, insurers may offer coverage for children of the insured who will be born in the future, with coverage starting at birth.

The rider will pay a lump sum (usually $25,000) on the diagnosis of a critical illness for a child. Generally, there is a single premium charge which insures all children in the family.

I hope this information will help. If you need more information of the above subject, please visit my home page at:

http://lifeanddisabitityinsuranceunderwriter.blogspot.com/
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Critical Illness Insurance 05

Option and Rider of Critical Illness Insurance