Understanding Life Insurance
Life insurance (or Life Assurance) is a contract between
an insurance policyholder and an insurer or assurer,
where the insurer promises to pay a chosen beneficiary
a sum of money (the benefit) in exchange for a premium,
upon the insured event (such as death/disability/debility)
of an insured person (often the policyholder). Depending on
the contract, other insured events such as life-threatening or
chronic illness can also trigger payment.
What Is a Chronic Illness?
A chronic condition is a human health condition or disease that is persistent or otherwise long-lasting in its effects.
Common chronic diseases include:
– arthritis
– asthma
– stroke
– cancer
– epilepsy
– diabetes
– viral diseases such as hepatitis C and HIV/AIDS
Chronic diseases generally:
– cannot be prevented by vaccines
– cannot be cured by medication
– do not just disappear
Health-damaging behaviors – particularly:
– tobacco use
– lack of physical activity
– poor eating habits –
are major contributors to the leading chronic diseases.
Chronic diseases tend to become more common with age.
Common chronic diseases include:
– arthritis
– asthma
– stroke
– cancer
– epilepsy
– diabetes
– viral diseases such as hepatitis C and HIV/AIDS
Chronic diseases generally:
– cannot be prevented by vaccines
– cannot be cured by medication
– do not just disappear
Health-damaging behaviors – particularly:
– tobacco use
– lack of physical activity
– poor eating habits –
are major contributors to the leading chronic diseases.
Chronic diseases tend to become more common with age.
How does it work?
When applying for life insurance, insurers may:
People with chronic illnesses may face:
However, some insurers offer specialized life insurance policies designed for people with chronic illnesses.
Terminal Illness Benefit
Many life policies include a Terminal Illness Benefit, which pays out the full insured amount if you're diagnosed with a terminal illness.
⚠️ If this benefit isn’t included in your policy, claims related to a chronic illness may not be honored, especially if the illness is diagnosed after the policy starts.
Important Tips for Policyholders
Life insurance provides financial security in difficult times — but only if you understand what’s covered. Always read the fine print, ask about chronic illness benefits, and keep your insurer informed about your health.