Hello Everyone
I have already been helped a lot by CD members when I posted a message regarding mortgage insurance. This time it is Critical Illness insurance ! This might be a silly question but is critical illness insurance really required ? Doesn't long term disability benefits take care of everything - just my ignorant hypothesis. Will really appreciate if anyone could throw some ight on this topic.
Many thanks
May I ask what you need critical insurance (CI) for? To cover the mortgage in case something happens to you?
Or just a general CI policy.
Let me also tell you that before CI came to Canada in the early 90's, when you took a mortgage nobody ever asked you if you need CI. Now because it is available, everybody tells you to take a policy, in my opinion, to make more money.
The number of foreclosures now due to CI is no more than in the 80's or 90's. I personally do not know of anyone who took out mortgages in the 80's and 90's who had to give up their homes due to CI. However, when we do go to the mortgage institutions to renew our mortgages we get this CI superfluity rammed down our throats.So far nothing has happened and I don't expect it to happen.
However, the mortgage institution that gives you the mortgage is probably just letting you know that such an option for protection exists, should something untowards occur to you and a foreclosure looms up.
Another thing also. If you take a mortgage from a bank, they will offer you a CI option, but if you take a mortgage from a trust company directly, they will rarely offer you that option. If you are going through a broker, he/she will offer you the option so you are aware of that protection, and to protect their backside, should something happen and you decide to sue them, but it is upto you to choose.
Remember what I told you about the mortgages in the 80's and 90's.
If you want CI in general just in case something happens to you and you need an operation done, you may take a small policy of $25,000 or $50,000 for emergency, but that is another story not connected to your mortgage.
I do not have a CI to cover my mortgage but do have a CI for other purposes. If anything should happen, then I can go to India and get an operation in 1/10th of what it costs me in the US.
A disability insurance covers other things than a CI like broken arm, leg, cut hand etc. CI covers organ transplant, heart attacks, cancer and the like.
If you need any more info, let me know vide the forum or PM.
Touch wood you'll never need to use the CI insurance.
life insurance is important but as the insured dies the beneficiary get the sum
assured. disability insurance may pay only till the time when person is disabled
a person may have disability insurance at work which is valuable but the
disability coverage will not pay u a lumpsum to pay off your bills & will give
usually no more than 70% of your predisability income also the benefits may
continue for limited time .
whereas critical illness insurance eliminates your largest monthly expenditure
such as your mortgage,health related expenses ,child care and babysitting
services,medical equipment and many more .
critical illness insurance pays you in one lumpsum ,once you receive the
sum assured amount the policy terminates,then you cannot buy any health
insurance,it is only given to people who are healthy.
the beauty of this insurance is that the sum assured is given to the
insured and if nothing happens to the insured the premiums paid into the plan
are given back after some time which is like a saving for the insured.
critical illness can have long term implications that can affect lifestyles
and standards of living ,and lead to out of pocket expenses.
expenses involved can include
1) lost income because of time of work
2) transportation expenses involved with necessary treatment
3) lodging and meals away from home for family members
4) deductibles and co -insurance payments
5) experimental drugs or treatments that may not be covered by your
provincial health plan or private insurance
6) modifications to your home or car, special diets .special training or
special care during recuperation.
anymore information required about critical illness insurance pls pm me .
Dear CD members
what are the good companies to buy insurance(critical illness and life) from?
what kind of policy is best/ better? like term/whole life?
what features the policy must have it? Or what we should be careful with?
Any comments/reply will be highly appreciated!!
--kumar
Quote:
Originally posted by at
life insurance is important but as the insured dies the beneficiary get the sum
assured. disability insurance may pay only till the time when person is disabled
a person may have disability insurance at work which is valuable but the
disability coverage will not pay u a lumpsum to pay off your bills & will give
usually no more than 70% of your predisability income also the benefits may
continue for limited time .
whereas critical illness insurance eliminates your largest monthly expenditure
such as your mortgage,health related expenses ,child care and babysitting
services,medical equipment and many more .
critical illness insurance pays you in one lumpsum ,once you receive the
sum assured amount the policy terminates,then you cannot buy any health
insurance,it is only given to people who are healthy.
the beauty of this insurance is that the sum assured is given to the
insured and if nothing happens to the insured the premiums paid into the plan
are given back after some time which is like a saving for the insured.
critical illness can have long term implications that can affect lifestyles
and standards of living ,and lead to out of pocket expenses.
expenses involved can include
1) lost income because of time of work
2) transportation expenses involved with necessary treatment
3) lodging and meals away from home for family members
4) deductibles and co -insurance payments
5) experimental drugs or treatments that may not be covered by your
provincial health plan or private insurance
6) modifications to your home or car, special diets .special training or
special care during recuperation.
anymore information required about critical illness insurance pls pm me .
Location: carl sagan's universe
Posted on: 26-03-07 14:12:01
Hi Kumar 8881
There are several good companies for life and critical illness (C.I.)- depends how much and what you are looking for.
Underwriting for life insurance is usually less strict than that for C.I. One company that is good for life may not be good for C.I.
You can also buy a combined life/C.I. policy or buy a life policy with a C.I. rider or separate policies.
It is best to outline what you need it for, b4 one can really suggest the optimum solution.
Please chk your pm.
Investpro,
I Tried to send you a PM yesterday but it didn't go through. I'm interested ni speaking to you regarding Travellers isurance for my parents who will be visiting USA/Canada this spring/summer. Would you please send over your contact details?
Thanks,
