2. Critical Illness Rider
A critical illness rider allows you to withdraw from your life insurance death benefit to cover medical expenses in certain instances. Depending on the policy, you can withdraw up to 100% of the policy or up to a maximum amount, such as $250,000.
The list of eligible illnesses vary by company, though normally consist of:
- Cancer (Life-threatening)
- Heart Attack (Myocardial Infarction)
- Stroke (Cerebrovascular accident)
- Renal Failure
- Amyotrophic Lateral Sclerosis (ALS)
- Loss of 2 or More Limbs
- Major Organ Transplants
The insurance company typically requires proof from a doctor of medicine who is duly qualified, licensed in the US, and performing in the scope of his/her license. The insurance company reserves the right to request a second opinion when needed.
There are some exclusions to this if the illness’s cause is from attempted suicide, self-inflicted injury, misuse of drugs, or involvement in illegal activity.
This rider acts separately from your health insurance policy and can be invaluable in saving your life and avoiding huge financial bills.