Issue link: http://clhia.uberflip.com/i/1516153
A GUIDE TO CRITICAL ILLNESS INSURANCE 16 A variety of options exist to help you choose a critical illness insurance policy that meets your needs and provides you with the most value. Plan guarantees Critical illness insurance policies are usually either non-cancelable or guaranteed renewable. A non-cancelable policy provides more value to the policyholder because it has more contractual guarantees, but it also costs more than a guaranteed renewable policy. • Non-cancellable: The insurer is required to continue coverage as long as premiums are paid on the policy. There can be no change to the premium schedule, monthly income benefits or the plan provisions stated in the policy unless the policyowner requests them. • Guaranteed renewable: The guarantees are similar to non-cancellable except that the insurer can change the premium schedule for an entire risk class of insureds if the insurer believes there is an increased risk for future claims on this risk class. The insurer cannot change the premium schedule for an individual policy or insured. A risk class can be segregated based on factors such as age, gender and occupation. The terms for such a contractual change should be clearly outlined in the insurance policy. Plan types Critical illness insurance policies usually vary by the length of the insurance coverage period and the premium rate schedule. Insurance coverage period Critical illness insurance policies will usually provide insurance coverage for a limited period of time or for lifetime. • Limited period: Limited insurance coverage periods are usually stated in terms of a specified age, for example, up to age 65 or up to age 75. • Lifetime: Lifetime insurance coverage periods provide critical illness insurance protection for the lifetime of the insured. These are usually more expensive but provide the most comprehensive insurance protection. OTHER PLAN TYPES AND OPTIONS 6