Want to know how you can get the most out of your life insurance policy while you are still living Here is what you need to know.
Having a life insurance policy is not only about covering your loved ones and giving you peace of mind. It also comes with benefits that you can use while you are still living which are known as living benefits or accelerated benefits. Here are benefits that can get your policy to pay you out while you are still alive.
You become critically ill
When life is going good we wouldn’t think that the worse could happen. However, life is unpredictable. Developing a critical illness can happen to the best of us, even if you have been maintaining a healthy lifestyle. This also means it can push your finances to the edge when you are unable to work. A life insurance policy comes with a cover for critical illnesses such as major heart attacks, cancer, strokes, severe burns, paralysis, major organ transplants.
According to the Association for Saving and Investment in South Africa (ASISA), South African insurers paid a portion of R63.7 billion to people who became severely ill in 2018 alone. Furthermore, 60% of these claims were made by women due to cancer.
Should you become critically ill you can choose to have 50% or 100% of the policy to be paid out to you to cover expenses. Remember to check if there is a waiting period which can affect whether an insurer will process your claim or not.
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You become terminally ill
If you are diagnosed with terminal illness and you are likely to die within a year, you have an option of having 50% or 100% of the claim paid out. However, keep in mind that if you opt for 100% of the policy the policy will come to an end. Your insurer will ask that you provide proof from a doctor of your choice to avoid fraudulent claims that cost the insurers R1.03 billion in 2016.
The same scenario will be applied to your circumstance as someone who has a critical illness, having the choice to get your policy to pay you out in full before you pass on. This is to ensure that you are financially secure so that you can spend less time stressing over finances and focus spending more time with your loved ones doing the things that you love. There is also an accelerated funeral benefit that is made within 48 hours so that your family can carry out funeral arrangements.
Always remember to keep your policy updated and make regular payments to avoid disappointment when it is time to claim. It is also good to keep all the required documents that are needed by your insurer in one file to avoid delays or confusion during such difficult times.