Life Cover -The Option to Increase
Posted on May 27th, 2011
Many life cover policies include valuable options that allow the amount of cover to be increased if certain events occur. The increases can be made without having to provide further details of health.
Life cover offers financial peace of mind by paying out a lump sum if the person covered dies or is diagnosed with a terminal illness. These funds can be used to help secure the finances of their nearest and dearest or to pay off debts such as a mortgage.
A life cover policy will usually include increase options for anyone who, when they take out the policy, is under a certain age, typically 50, and in a good state of health. The options are included for no extra cost and can usually be exercised if the person covered:
• Becomes a parent.
• Gets married.
• Forms a civil partnership.
• Legally adopts a child.
• Increases their mortgage, to move house or pay for home improvements.
The policy owner can apply to increase their amount of cover if one of the above events occurs. Policies may also include an option to extend the cover term to match the term of an extended mortgage. There will be a limit on the maximum amount of increase allowed. The policy owner must also be below a certain age, often 55, to be eligible for an increase. The request to increase cover must also be made within a certain period, say 30 days, after the event has occurred. The premiums will also increase to reflect the cost of the increased cover. Details of all the precise terms and conditions can be found in the provider’s policy conditions.
The one big advantage of using an increase option, rather than simply taking out a brand new policy, is that there is no need to provide evidence of health, occupation or pastimes. This means that if the insured person’s health has deteriorated, since they took out the original policy, or they are in a higher risk occupation or now take part in a dangerous pastime, that will not be taken into account when calculating the premium for the increased amount. This could be a big money saver. The right to increase cover is guaranteed, provided all the option terms and conditions are met, even if the insured person would otherwise be refused any further cover.
It can be a great comfort to have a policy that includes these valuable options. They offer the certainty that, for all the important events in life, the amount of cover can be increased – that’s guaranteed.
Company Profile:
John Lewis Insurance offers a range of insurance services selected by the John Lewis Partnership. These include home, car, travel, pet, wedding, event and life insurance products.
For more information about John Lewis Life Cover please visit the website here – http://www.johnlewis-insurance.com.
Similar Posts:
- FDIC Bad News Means What to Savings Investors
- ING Direct Canada 10 Year Fixed Mortgage Rate Deal
- Top 5 Myths about FDIC Insurance
- Bank of America’s CEO, Ken Lewis’ $53 million exit
- If You Want to Budget, Start With the Big Stuff
Tags: Increase, Life Cover
Filed under Bank Rates |