Understanding Interim Cover and Limited Acceptance Cover on Your Life Insurance

Information verified correct on September 30th, 2016

What is Interim Cover and Limited Acceptance Cover?

One reason why people shun away from insurance is the thought of having to undergo a long process of verifications and medical check-ups. This was before because life insurance providers had continuously improved their products to make them more relevant to the changing times and the changing needs of the people.

In order to address the problem of a very long application process, life insurance providers have introduced some modifications to life insurance features and also the method of application. Some of the latest developments include interim cover or limited acceptance cover and online applications. So what do these latest modifications do to make life insurance more client-friendly?

  • Interim Cover - Life insurance application can take some time before being approved. If you have some pre-existing medical conditions, the approval can take much longer than usual. But with interim cover or limited acceptance cover, you have automatic cover while your insurance application is still being underwritten or waiting to be approved. Therefore, when you die while your application is still being processed, your loved ones will already receive benefits they can use to pay off final expenses.
  • Online applications - With the use of internet technology, trade becomes faster and easier. With insurance companies using these innovative methods, life insurance applications can be processed in a matter of minutes. This is because life policies are offered at point of sale. And as everything is immediate and done electronically, you don't have to worry about your application being misplaced.

With the ease and speed of getting life insurance cover nowadays, not to mention the reasonable cost, there is no reason why you should delay. Why go through life unprotected and expose yourself to such risks when you have the option to do otherwise?

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Coverage is the amount of money that you will be paid in the event of a claim. An insurance consultant can help you determine an appropriate amount. Calculator
Provides a lump sum payment if you become totally and permanently disabled and are unable to return to work.
Provides a lump sum payment if you suffer a serious medical condition. Cover can be taken out for 40-60 medical conditions depending on the policy you choose.
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Preparing for the Future with Life Cover

There comes a point in life where people become afraid of the future - with all the uncertainties that the future brings including economic crisis, accidents, and deaths. With these things troubling you, you cannot help but think of ways that you can keep your future secure and somehow manage to add a certain predictability to it. However, no matter what you do, the future cannot be tamed and we are all at its mercy.

There is some good news, however, despite the unpredictability and the fragility of the future - you can lessen its impact when it comes, especially the distasteful parts, and that is through life insurance.

You might snicker at the suggestion having heard so much about insurance in different forms. Not to mention the high premium costs that can greatly affect your already tight budget. These kinds of reactions are very common to people since not all have the complete and proper information given to them except second-hand information, which is more often negative than positive.To clear such misconceptions, here are some questions and points to consider: Which is better ñ to prevent yourself from getting sick or to go to the best doctors to get treatment for your sickness? Second, do you drink coffee?

You might be wondering what the doctor and coffee has to do with life insurance? You might be surprised that there is a lot. To the first question, you might choose the first option, which is correct because, as we know, preventive medicine is much better than looking for the cure. Not to mention that it can save you a lot of money. This is what insurance does for you - it already gives you some sort of preventive measure against financial loss.

As for the second question, you might be surprised to know that the monthly total price of the cup of coffee you drink every day is more expensive than the cost of the life insurance premium you will pay every month. Given the fact that life insurance is a preventive measure and not expensive, will you deprive yourself and your family from such protection and go about not worrying about the future?

More of the Benefits of Life Insurance

Peace of mind is the major benefit you can get from life insurance because you are aware that there is a safety net for you against financial difficulty an illness, injury, or death can bring. For a more detailed list of benefits, however, here are some other things life insurance can do for you.

  • It will help you pay debts, mortgages, and other financial obligations you have.
  • It will protect your estate from being liquidated to pay off debts.
  • It can pay for your children's education.
  • It can help maintain your loved one's lifestyle even if you die.
  • It will help pay for any final expenses that might arise such as medical and funeral expenses.

You can also use the above benefits and reasons to help you decide how much cover you need. The more you want included in your cover the higher the premium. Despite this fact and despite being conscious about the cost, the price should not just be your main focus but the benefits you can get from it. The general rule of the thumb, however, is get insurance that is five to seven times your annual salary.

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