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Critical Illness Insurance Do you really need it? Or is it a waste of time?

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Critical Illness Insurance Do you really need it? Or is it a waste of time?

GREAT NEWS! There’s now a one in five chance of you winning the lottery before you retire.

Getting excited? Think it’s just a matter of time before you win? Think again, it’s not going to happen – but it got you thinking!

Now think of the same odds but this time about bad news. There is a 1 in 5 chance for men and a 1 in 6 chance for women that a long-term critical illness will prevent them from working. Sorry – this time it’s true.

Insurance cannot change those odds but it can alleviate the potential financial wreckage caused by being unable to work through long-term illness and still having a family and home to support.

Convention declares that every good family man should have life insurance. It’s easily understood, it’s accepted and your next door neighbour has it too. But what about it’s close cousin critical illness insurance? You’ll have to walk several streets to find someone who has it. Given the odds, why? After all it pays out a tax-free lump sum immediately an insured critical illness is diagnosed.

The usual reason given is its expense. Yes it is more expensive than life insurance but after all it’s providing cover for a greater risk. You’re much more likely to experience a critical illness than die before your normal retirement age. Indeed, the average age for a claim is 47. So clearly there is much more to the public’s resistance.

Not underst anding the risks or “head in the s and syndrome” are certainly major factors. After all a lzheimer’s disease, bacterial meningitis, brain tumours and leukaemia plus the long list of other illnesses typically covered by critical illness insurance, are not matters we care to think of nor know much about.

Could there be another reason? Well there have been repeated newspaper articles about people who claim on their critical illness policy only to have it turned down on an apparent technicality – the inference being that the insurance company cannot be trusted. Indeed, St andard Life freely admits that it turns down around 20 % of critical illness claims.

The truth is that behind every story of rejection there’s a harrowing story of illness, distress and sorrow – and potential copy for the journalist. But that in itself, is not evidence that the insurance company is guilty of devious behaviour.

Yes insurance companies do make mistakes, but more often than not the claim was invalid from the outset. There are two main causes. Firstly, the policyholder is claiming for an illness that is not one of the critical illnesses scheduled in the policy documentation. Regrettable, but it’s a fact that if the illness is not listed it isn’t insured and the policy won’t pay out.

The moral is to closely compare the illnesses covered by competing insurance companies and buy the one with the most extensive coverage of illnesses. If you don’t, sods law will prevail …….

The second major reason for refusal is a failure to disclose all relevant matters on the original application form. For example, if the applicant fails to disclose in response to the insurance company’s questions that his father a died of a heart attack aged 50 or that he is having medical tests for headaches, then the insurance company will wrongly assess the risks it is being invited to insure. Had the insurance company known this extra information they might have increased the premium, or asked the applicant to go for a medical examination, or waited for the outcome of tests, or even refused to provide cover. By failing to disclose, the applicant has effectively obtained cover on false pretences or at least on inaccurate information.

Thereby lies the second moral. Always provide the truth and the full truth on your application form. Anything remotely relevant to your medical condition must be disclosed.

All this points to the need for professional insurance advice. Critical Illness policies do vary and it can take an experienced eye to evaluate the best policy for your circumstances and pocket. This doesn’t mean that you have to miss out on the discounted premiums available online – but do thoroughly talk it through with one of their telephone based advisers and do make sure you read the schedule of claimable illnesses when it arrives in the post.

Then sit back knowing you’ve taken another important step to protect your family’s finances. Lets all hope that you’re one of the majority who are happy never to claim.

It’s now time to concentrate on enjoying life.

Do I need an agent to buy life insurance? (yes!)

You can buy life insurance without an agent. As long as you have an internet connection, thous ands of companies will always be willing to take your money and offer you generic plans that aren’t tailored to your life. If you love the idea of a web based company that can easily disappear before you get the chance to die, you should definitely consider buying life insurance without an agent.

If you enjoy the idea of just grabbing a r andom figure for your life insurance coverage out of the blue, you will love working without an agent. When you opt to work without an agent, you can pick any number that you want, and it doesn’t have to match with your reality at all. If you like square numbers, you can pick 250,000.

In contrast, most agents require their clients to look carefully at their own debts and financial obligations. They make their clients go through the onerous process of determining how much money their dependents will need after their death. This ensures that your dependents will be fine, but those five or ten minutes with an agent can be painstaking for the person buying the insurance.

When you work without an agent, you can easily determine whether you want whole or term life insurance. You can skim the sections of your contract that talk about ideas like "living benefits" or "exclusions" or borrowing against your policy. If you turn to an agent, they may require you to read the small print. They may actually explain what the plan offers, and let’s face it, no one wants to listen to all that junk. Who has the time?

If you want to save time and have a policy that may or may not cover anything that you need from a company who may or may not be reputable, then you should certainly not work with an agent. Their experience and knowledge will just be distracting and irritating.

Life insurance: First world problem?

Is the worst thing that’s happened to you this morning a drop of coffee on your suit? Do you find it difficult to imagine needing an insurance policy against fire for your house, much less an insurance policy on your own life?

Well, take a look at this disturbing statistic: 100% of people die sometime in their lives. Duh, right? But a lot of people just ignore the risk until it’s too late and then die with no insurance! This is especially common among younger people who would rather defy death by texting as they drive. Clearly they feel that death is escapable and therefore they don’t need to provide for it.

But this is not the case. The Center for Disease Control and Prevention reports that in 2009, 793.8 people died out of every hundred thous and. (http://www.cdc.gov/nchs/deaths.htm) And that’s in one year alone! Can you see what a high chance this gives you of dying this year? Admittedly the chance is lowered a bit if you’re intelligent enough not to text while driving, but what of falling airplanes? UFOs? Biological warfare? Charging rhinos? The dangers are everywhere!

Perhaps wiping the coffee off your suit and looking into a life insurance policy wouldn’t be such a bad idea after all. You know that you’re going to die sometime, and with a life insurance policy you really can’t lose. Besides, you win either way, because if you die your family will be provided for, and if you end up being the first person in America to gain immortality, I think the insurance company would give you a refund. Not that you’d need it- you’d be rich and famous anyway.

Do I Need Life Insurance?

Life insurance is one of those things you never want to have to think about when you are young. Because you only need life insurance if you die, and buying life insurance means admitting you’re going to die. Therefore, those of you that are immortal can stop reading this.

But for everyone else (ie those of us who are going to die), chances are that even if you don’t need life insurance now, you will someday in the future. Life insurance helps provide money for your dependents and your spouse or significant other after you die so that they can continue to pay their bills and live the life style that they have been used to based on the income you are currently making.

Life insurance is also a way for you to give to any charities you may have supported while you were alive or may have wanted to support while you were alive. Life OOinsurance can go to almost anyone you designate, depending on the type of policy and how it was set up. So if you don’t like your family, it can go to someone else.

But you may think you do not need life insurance because you are going to live for a long long time. That’s not as true as you would like to think. Do you like to eat fatty foods? Cholesterol buildup leads to clogged arteries, which leads to heart attacks, which are also often fatal. It also leads to heart disease, which is a leading cause of death. Do you ever ride in a car? Car accidents are another major cause of death. So buck up buddy and get some life insurance to help out your family (or your favorite charity) because you don’t have long to live.

If You Don’t Have It, You Need to Get It

[youtube]http://youtu.be/KEdNieA6PzM[/youtube]Margaret Sweborg’s story is told by her step-gr anddaughter, Rindy Main, and her insurance agent because of her current condition caused by Alzheimer’s Disease. She married Rindy’s gr andfather, Wayne, and into his extended family in 1966. In his job selling business supplies, Wayne met the man later to become his insurance agent. Margaret was known for being very, organized, meticulous and active in the local community. After Wayne’s death, she purchased a long-term care insurance policy as a supplement to her coverage. Her extended family, including Rindy, continued to visit often from her home in Melrose Hill, LA. Margaret lived alone in her own home until she was discovered by a neighbor to have fallen five days earlier and broken her hip. She was taken to a nearby hospital where she was not expected to live. Despite the odds, Margaret survived but required nursing home care due to her hip and a diagnosis of Alzheimer’s disease. Rindy was able to place her in very reputable facility due to the coverage from the long-term care facility — an option that would not have been available without the policy.

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