Monday, August 27, 2012

The Insurance Policy Riders

Most of the time when I do a review of policy, the clients knew the basis of the insurance, but when probe further, most are in the dark of what each of the rider/benefits does.

Here's a lists of riders that are/can be attached to a policy and/or its purpose:-
  1. Life / Death - in the event of the death of the client, this rider will pay a lump sum (up to the sum being covered for Life) to the beneficiary and policy will terminate.
  2. 36 Critical Illness - in the event the client is diagnosed with any of the 36 Critical illness, this rider will pay a lump sum (up to the 36 critical illness sum being covered). Do note that generally most 36 Critical Illness plans accelerates the payment of the Life and the 36 Critical Illness cover is not a separate sum from the Life Cover. Once a claim is made from the 36 Critical Illness, the policy is waived if it is being attached with a waiver.
  3. Early Critical Illness - in the event the client is diagnosed with any of the Early Critical Illness, this benefit allows you to seek the treatment by covering a wider range of early stage critical illnesses such as early stage cancer, loss of sight of one eye and insertion of pacemaker. Claims from Early Critical Illness will not waive the premiums.
  4. Accident  - in the event the client death or permanent disable due to an accident,  this rider will pay a lump sum (up to the sum of the Accident sum being covered). This is a separate sum insured from the Life Cover. In the event of death due to an accident, both the Accident & the Life sum insured will be payable to the beneficiary.
  5. Total & Permanent Disability Income - Pays an annual income to the client should he/she is  being diagnosed with Total & Permanent Disability during the term of the policy.
  6. Crisis Cover Income - Pays an annual income to the client should he/she is being diagnosed with any of the 36 Critical Illnesses during the term of the policy.
  7. Spouse Waiver - If a wife buys a policy and include a spouse waiver (spouse waiver is under the husband's name) and along the years the husband is suffers from any of the 36 Critical Illness, Death or Total & Permanent disabled, the wife's policy will be waived (until the end of the policy term). The same analogy applies for a husband who buys a policy and include a spouse waiver.
  8. Parent Waiver -  If a father  buys a policy and include a Parent waiver and along the years the father is suffers from any of the 36 Critical Illness, Death or Total & Permanent disabled, the children policy will be waived (up until the child has attained the age of 25),
  9. Double Parent Waiver -  If a father & mother buys a policy and include a Double Parent waiver and along the years the father OR the mother is suffers from any of the 36 Critical Illness, Death or Total & Permanent disabled, the children policy will be waived (up until the child has attained the age of 25).
  10. Medical Card - The insurer will cover/pay to the hospital the amount as limited to the annual & lifetime limit. Terms and conditions applies. Do check out the Exclusions on what is not being covered. Claims from the medical card does not reduce the Life/Critical Illness sum insured.
  11. Hospital Income - Pays a daily income to the client should he/she is being admitted as an in-patient.