There are four key types of life insurance – term life, whole life, universal life and variable universal life – which all cater for different needs and requirements. However there are certain occurrences in life that are not specifically covered in life insurance policies.

However some insurers will allow you to add ‘bolt on' clauses to your policy to cover unexpected developments and ensure that you and your loved ones are not left unprepared. These bolt-ons are not free although in some cases the additional charge may be so minimal that the insurer will add them on to the cost of the original policy without informing you.

These additional clauses are basically ways of covering the payment of premiums or adapting the death benefit should something unforeseen occur to the policy-holder during the life of the policy. For example, what would happen if you suddenly found yourself out of work due to accident or illness? The level of premiums that you are paying into the policy may become too high without a steady income, which can be a particular problem if the premium rate is fixed. To cover this eventuality some insurers will add on a Waiver of Premium Option, which absents the policy-holder from payments for the period of time that they are out of work. You may need to check the terms of the Waiver to make sure you are aware of any time limits or periods of activation prescribed within it.

Another bolt-on option is Disability Benefit, which pays out the amount of the benefit upon the policy-holder becoming disabled. After all, the financial effects of disability can be just as substantial as those of death, if not more so. Adding Disability Benefit to your Life Insurance policy means that you or your family will not be left unable to pay for important medical treatment or equipment related to your condition. Whilst this is an advantageous addendum to have it can push the cost of premiums up considerably so keep an eye on your budget.

None of us can tell how or when we will die but death due to accident or third party negligence can be especially cruel. Double Accident Benefit cannot ease the sense of injustice associated with accidental death but it can help financially by paying out double the amount of benefit. Again it is worthwhile checking with your insurer exactly what constitutes accidental death, as there will be strict guidelines as to what is covered and what is not.

One of the constant worries involved in life insurance is the dreaded medical. Not only is there the fear that something unpleasant might be discovered but also that any changes in your health may trigger changes in the terms of your policy. One way round this unfortunate ritual is to take out a policy with an Increasing Cover option. With this bolt-on you increase the amount of cover at designated intervals in return for skipping the medical check. At first this might sound like throwing money away; why increase the level of premiums when you don't know for definite that they need to be increased? But all premiums increase as the policy-holder gets older as the risk of them dying becomes ever greater, so all that you are really missing out on is the invasive medical.

An alternative to the life insurance payout is Critical Illness cover. This type of policy pays out to the holder in the event that they develop a critical illness, again from a pre-arranged list drawn up with the insurer. This has similar advantages to Disability Benefit in that it can cover any costs incurred as a result of the illness. However it is important to remember that this is an alternative to a life insurance benefit rather than an addition to it, if your policy contains this clause you will only receive one payout.

There is also Terminal Illness cover, which pays out the benefit should the policy-holder contract an incurable illness in its advanced stages. Advanced is generally regarded as being when the policy-holder has less than twelve months to live, although the option is usually withdrawn eighteen months before the termination of the policy. The receipt of the benefit can help to cover the cost of any palliative care required in the final stages of the illness and so works in a similar fashion to Disability Benefit and Critical Illness cover.