In this post, we discuss Return of Premium options often offered as riders to an individual critical illness or disability insurance policy.
Let's be honest. Buying insurance is not the most fun you're going to have. Never mind the process of reviewing your and your family's medical history; we all have a tendency to think that "it will never happen to me."
But Return of Premium options take away the pain of paying all of those premiums if you are in a lucky position to never have to use your policy.
What is a Living Benefit?
Unlike Life Insurance, Critical Illness and Disability Insurance are called living benefits, which means that you have to be alive to collect the insurance.
Disability Insurance pays if you are unable to do your job due to an accident, illness, or injury.
While many group insurance contracts cover a loss of income, you can find yourself under-insured if your employer plan limits coverage you can get without answering health questions.
Critical Illness insurance pays a one-time, lump-sum benefit if you are diagnosed with a covered condition and survive for a period of time (usually 30 days).
How does Return of Premium Work?
There are different options available for each policy type. Disability Insurance, for example, pays you 50% of your premiums back every 5 to 7 claim-free years.
Return of Premium for a Critical Illness Insurance policy usually kicks in after 10 to 15 years and you cancel the coverage.
Why Living Benefits?
Accidents and Illness threaten your lifestyle and financial wellbeing, but it can be confusing figuring out what you have and what would happen if your health or ability to earn and income were disrupted. While government programs are available, they seldom leave you in the same position.
We'd love to help you figure out what coverage you already have in place. Together we can provide you with peace of mind and make you ready for some of the things that life can throw your way.