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What does Life Insurance cover? 

When you think of life insurance, you think of a lump sum at death. It’s so much more than just a death benefit to support family. Unfortunately, death is not the only trauma that may occur during your lifetime. You may become critically ill or suffer a disability. If any of these events happen, you will need a financial boost to be financially secure. Other forms of life insurance coverage can be added to standard life cover. 

What are the Supplemental Types of Life Insurance? 

You can add various kinds of additional life covers to your life cover. 

• Critical illness cover – No one knows what the future holds, and no matter how healthy a person’s lifestyle is, anyone can become ill. If a person becomes critically ill, like being diagnosed with cancer or a rare disease that needs treatment this cover will provide an income. During treatment, you might not be able to resume regular work, and your income will be affected.  
• Disability cover – Your lifestyle can change in the blink of an eye. An accident or illness may leave you permanently or partially disabled. This cover ensures a lump sum payout for treatments, lifestyle changes, equipment like wheelchairs, or even income replacement if you cannot work. 
• Personal accident cover – This is similar to the above two covers if you are involved in an accident and need medical care or rehabilitation will be paid in a lump sum. It could also supplement your income during the recovery term when you are not able to work.  
• Group life insurance – Employers typically offer this as part of a benefits package. It provides standard life insurance and may include death, disability and critical illness for the employee and even their families.  
• Income protection – Your biggest asset is your ability to work and earn an income. If you no longer receive an income, will you and your family be able to pay the bills? Income protection pays out regular amounts to replace or cover part of your income for a time period till you can resume work. 
• Key Person Insurance – This is life cover a company takes out for a key member, like the owner or top executive, who is critical to the business and whose death may be detrimental. The company is the beneficiary. The cash flow would assist the business in remaining open and finding a replacement or implementing new strategies to stay open or close doors.  

Life cover for over 50s 

Life cover gets more expensive the older you get. There is a discounted life cover that over 50s can take out, offering a smaller payout. It usually does not need medical exams or disclosure of pre-existing medical conditions. This is typically taken to cover funeral expenses or leave a small amount for the family.  

Life Cover Quotes 

When asking for quotes for life cover, be sure to include additional types of life insurance. A financial advisor can fully assess your insurance coverage needs and create a comprehensive insurance plan for your lifestyle. 

Please note, the above is for educational purposes only and does not constitute advice. You should always contact your advisor for a personal consultation. 

* No liability can be accepted for any actions taken or refrained from being taken, as a result of reading the above.