With a life insurance policy, you get a definite sum of money which will be paid in the event that you die. In a medical policy, the insurance company shoulders the cost of your medical bills up to a certain amount of time. In health cash insurance, the insurer compensates a pre-determined amount of money. An income insurance is unlike any of these policies. What it usually does is that it pays you a sum of money, in replacement of your income, only after subtracting the other compensations you have been getting.
If you’re diagnosed with a terminal disease, you can avail of an optional benefit that some insurers make available to their clients. If it has been established that you would only have 12 months to live, you can make a claim of a six-month payments as a lump sum. If you avail of this benefit, the entire policy usually stops there. Unlike in life insurance, insurance companies do not wait for their clients to pass away before making a pay out. A lot of insurance income does not cover death benefits. Others will reimburse a death benefit only if the claimant dies within 12 months of making a claim. (more…)
