Life insurance partial payment
Many life insurance companies have added partial benefit payments to their policies and this can be a massive benefit for clients and insurance companies alike.
I used to think insurance payments were black and white – either approved or denied. With car and house insurance this might be the case. However, in the life insurance space, this is not so.
What is a partial payment? Partial payments are extending across life policies. Insurers may pay partial payments in the event you are diagnosed with an illness but you don’t meet the criteria for a full payment.
For example, trauma policies often cover diagnosis of cancer. All policies vary, but to qualify for payment, you need to be diagnosed at a certain stage of cancer. However, some policies will pay a partial payment for early-stage cancer diagnosis.
Another example would be if you were diagnosed with multiple sclerosis. This is a slowly progressing illness so you may have to wait several years before you qualify for a full payment. Partial payments will allow for a payment earlier in the illness, which allows time for you to adjust to your condition, make small adjustments to your home or take some time off work to make peace with your new condition.
So why wouldn’t insurers wait until you qualify for a full benefit? They believe that the earlier you are diagnosed, the better chance you have for recovery. A partial payment may assist you to seek better treatment and aid recovery – therefore saving the insurer from making a full benefit payment. It’s a win – win situation!
Shannon Bennett
