Can People About to Die Take Out Life Insurance Policies?
There is a type of benefit called terminal illness insurance. It is also known as accelerated death benefit. This type of benefit can be of great help to an individual if he or she is diagnosed with a terminal illness. Terminal illness insurance is exclusively meant for individuals who are suffering from terminal illness like cancer. If a policyholder is diagnosed with a terminal illness and his or her estimated remaining life expectancy falls within a year, then the company will pay him or her a substantial amount in order for medical expenses to be covered.
Who are those who would be in need of terminal illness insurance? These are individuals who are suffering from a terminal disease. Those who are also caring for a person with a terminal disease might also be in need of this type of insurance in order to alleviate the difficulty of having to pay medical expenses. Since medical expenses can be an additional source of stress for those who are already suffering, terminal illness insurance is a smart choice.
Terminal illness life insurance is not up for purchase as a separate insurance policy. It is a benefit which is added to an already existing life insurance policy or a mortgage insurance policy, and it comes in the form of a rider or an attachment. Some insurances companies attach these benefits to their life insurance policies by default. Other insurance companies offer terminal benefits in the form of a rider and charge a separate amount of money for its usage.
How will the company confirm that a person is really terminal ill?
A requirement that companies will often ask for is a medical certificate from a qualified physician. It should be found in the certificate that the individual is terminal ill and that the life expectancy is less than a year. After confirming the authenticity of the certificate, the company will provide you with the assured amount.
Critical illness insurance and how it differs from terminal illness insurance
A similar type of insurance is called critical illness insurance. This, on the other hand, is a form of health insurance that gives out a lump-sum payment to policyholders who suddenly become seriously ill. The types of illnesses that this insurance covers differ from company to company, but the most common would include: cancer, heart attack, stroke, and other similar conditions.
Coverage may also change according to the severity of the illness or disease. For example, if you are diagnosed with a type of cancer that may still be controlled and will only inconvenience you for a while, then you might not be eligible to make a claim from your critical illness policy. A critical illness policy may not be purchased for a pre-existing condition or illness.
Critical illness insurance should not be confused with terminal illness insurance. True to its name, terminal illness insurance is only meant for terminal diseases. While terminal illness insurance only pays you if you are suffering from a terminal disease, critical illness insurance will provide you with an amount of money for a sudden illness that could possibly claim your life.