The main features & benefits of Health Insurance

Waiver of premium
This feature is available as an option and provides for payment of the premium if the insured is ill or disabled and as a result loses his/her income through not being able to work. The insurance company pay or “waive” the premium until the insured returns to work or the plan comes to an end. The option is set up to start after a period of time, known as the deferred period, which is normally 4, 13, 26 or 52 weeks.

Guaranteed premiums
An option that ensures that the premiums will not be reviewed and increased throughout the period of the plan.

Reviewable premiums
This option provides a lower premium compared to guaranteed premiums during the early years of the plan. The premium will be subject to review after a period of time, normally after 5 or 10 years. A new premium will be set which reflects the insured’s new age and the insurance company’s charges and will normally be increased.

Indexation
This benefit helps to provide protection for the insured amount from the effects of inflation. The insured amount can be set to increase each year in line with the Retail Price Index (RPI) or a fixed percentage normally 5% or 10%. If this option is selected the premium will also increase each year in line with the level of increase chosen.

Permanent and total disability
This is an option where the benefit can be claimed if the insured becomes totally and permanently disabled. The insured must be unable to carry out their own occupation, any occupation or a number of the activities of daily living. This will depend on the definition of disability chosen at the outset of the plan.

Joint or single life
The plan can normally be set up as an individual plan or jointly with another. If the plan is set up jointly with another it will only pay out on the first claim and then come to an end.

Life insurance cover
Some insurance companies offer the option of adding life insurance to the plan. If this option is chosen then the plan will normally only pay out on one event and then come to an end.

Life buyback option
If life insurance cover has been chosen then this option is also available and enables the insured to “buyback” the same level of life cover 12 months after a claim for critical illness or total and permanent disability has been made. The premium for the life cover will be based on the insured’s new age and the insurance company’s charges at the time but will not require any further medical evidence. Not all insurance companies offer this option.

Income option
Some insurance companies offer the option to pay the benefit in equal instalments normally over 5 years instead of one lump sum.

Children’s cover
Some insurance companies provide this benefit as standard and provides cover for the insured’s own or legally adopted children. The amount covered is normally restricted to 50% of the sum insured subject to an upper limit. The number of children covered may be restricted. Cover will normally be available to the children from the age of 30 days to their 18th birthday.

Family income benefit
Some companies offer critical illness benefit as an income rather than a lump sum. The amount insured under the plan is expressed as a monthly income and will be paid until the end of the term of the plan or earlier death of the insured.