Life Assurance Add-Ons: Protection Against Some of Life’s Unpleasant Surprises

Life assurance is a life insurance product that assures one of a definite payment. This means that whether you outlive the length of the policy or die within the policy’s coverage, you are assured of a monetary benefit. This provides both protection for your family against your untimely demise, and money for you to spend when you survive the policy’s maturity date.

To provide more layers of protection for your family, you can also opt for some add-ons or riders, aside from the basic life assurance coverage:

  • Critical Illness Insurance.

    Bought alone or with life insurance, this pays out a lump sum if the insured is diagnosed with a critical illness that is listed in the policy. Critical illness insurance pays separately from the life insurance cover. The proceeds enable the insured to have the funds to pay for medical treatment and prepare for end of life expenses. Critical illness insurance is only offered to people within an age range (usually 18 to 60 years old).

    It is best to take this cover while you are in good health condition. Once you are diagnosed with a critical illness, it might be more difficult to get this cover.

  • Inflation protection/indexation cover.

    This provides regular increases to the sum insured, usually indexed to the current rate of inflation. Inflation may eat up the proceeds of the insurance. An amount that may have seemed adequate at the time it was bought but may be smaller when you consider inflation ten or twenty years down the line. This insurance add-on protects the sum insured – the additional amounts serve as a buffer against the increasing cost of living.

  • Family Income Benefit.

    Instead of a lump sum, the proceeds of the insurance are paid out in monthly installments. This provides peace of mind to those who’d rather not think about how to invest a big insurance payout.

  • Accidental Death (and Disability) Rider.

    This add-on doubles the payout if the insured dies due to an accident. If this rider includes disability, a table is used to determine the percentage of the sum insured that will be paid out. For instance, 100% for the loss of both limbs, 50% for the loss of 1 finger and so on. (Please note that this is just an illustration and percentages will vary from policy to policy).

  • Waiver of Premium Benefit.

    This waives the premium (usually for the entire duration of the policy) if the insured is diagnosed to be totally and permanently disabled.

To protect your loved ones for less, fill the form on the right to get your life insurance quote.