Life Insurance and Critical Illness Insurance

For the uninitiated insurance can be a complete minefield.  The vast majority of our clients work for multi nationals and have 'In Service' benefits which are usually in the range of three times annual salary paid out on death.  They usually feel that they are adequately covered, but this could be a mistake.

There are a number of problems with this cover however.  Very often there are exclusions which could be as extreme as cancelling insurance in the instance of a long term illness.  Should you leave your employer your insurance will cease, either immediately on departure, or shortly after. 

In an ideal world we would all take out insurance at a young age and pay very low premiums, and eventually receive no benefit at all from the insurance - i.e. we live a long life!  In reality the average age of client we talk to about increased insurance cover is 42.  At this age insurance is still affordable, but will be a more significant amount to pay. 

It is often advisable to add in 'riders' to provide accelerated benefits.  These are conditions whereby on the occurrence of an event - such as diagnosis of a critical illness, or an accident or disease leading to disability - will result in a lump sum payment.

This payment could make a huge difference to your quality of life at a very difficult time.  Ordinarily these payments are an acceleration of your life benefits and will reduce the eventual payment your estate will receive.

This is of course by no means an exhaustive explanation of life insurance, but will hopefully make you aware enough of critical illness cover to speak with your adviser.

For more information contact me

Mark Paine
Meyado
Singapore
www.meyado.com.sg