Critical Illness Insurance

A client might want to consider purchasing critical illness insurance. This type of insurance provides protection against the high economic costs of medical treatment for a serious illnesses. However, the product provides more than just this type of protection. In fact, there are three ways that the beneficiary of this type of policy can take a benefit from critical illness insurance:

• First, a client can become ill and have the insurance subsidize the costs of the policyholder’s medical expenses by providing a tax-free lump sum to the policyholder.
• Second, if a client does not survive, then his or her beneficiary can take the same benefit under the policy.
• Third, a beneficiary would still take under the policy, even if the client died on some other cause. However, under these circumstances, the beneficiary would receive a complete refund of the premium.

See Edwin Morrow, Why Should Your Clients Buy Critical Illness Insurance, ProducersWeb.com, May 31, 2012.