Life Time Protection

It is not uncommon for people to unfortunately get struck with illness that impairs them for longer periods of time or have an accident which will leave them unable to work for long periods of time. The usual short term accident and sickness insurance pays monthly benefits upto a maximum of 18 months. After that even if you are unable to work, the benefits payments will stop. This is where the Life Time Protection Insurance comes in handy. These policies do not place any restrictions on the number of months the benefit payments will be made to you. If you are unable to work due to accident or sickness, you will be get your monthly benefit until you get back to work. If it ever means that you cannot ever get back to work, the policy will pay your monthly benefit until you die.

Most policies provide a choice of what you want to cover. You can cover mortgage only, life style only or cover both mortgages and lifestyles. Apart from Accident and Sickness, you can also cover yourself for Unemployment. Under Unemployment part of the cover, in most policies, you will be covered for a maximum period of 12 months. Also some policies stipulate the condition that you can claim for a maximum of 36 months towards unemployment during the life time of the policy.

In terms of type of cover, some policies also offer you the choice to choose between a level cover or inflation index linked cover. With the level cover, you will get the same amount of benefit month after month and with the inflation indexed cover; your monthly benefits will be linked to inflation and re-adjusted periodically. The benefit with the index linked cover is that you will never lose your purchasing power as the benefit amount will go up if the inflation rises.