In Britain we have a type of insurance called critical illness cover, which is a long term policy that will give you a tax free ''lump sum'' in the event of being diagnosed with a serious illness. It is designed so that you can pay off your mortgage or alterations to your home if you require them due to illness. My message here is that i had this cover until a few years ago and then cancelled it thinking i can't afford the premiums, it's too expensive. Six months ago i was diagnosed with a serious heart condition that would have been covered by the insurance and my mortgage would have been paid off. How i regret cancelling that policy now, i would urge anyone not to make my mistake and keep up with the premiums, don't just think it will never happen to me because life has a way of surprising you. Not all conditions are covered, but i think now that it is an essential insurance to have.
This is interesting because I received a cold call about this type of insurance a couple of weeks ago. I listened very carefully as it was explained to me how it works. The thing is that knowing that you can never be certain what life will throw at you from one day to the next there are some facts to take into account when considering this type of insurance. (1) your overall health at present and (2) your family health history of critical illnesses. These were not asked of me during that call and I did mention it to the agent. If I felt strongly that I was at high risk of any critical illness I would definitely consider that type of coverage.
My health was excellent, i was extremely fit and regularly ran half marathons, there was no family history of critical illness either. I had a virus last summer, flu like symptoms, followed by chronic heart failure a few weeks later. The virus had attacked my heart and left it severely damaged. This came totally out of the blue, so i don't think you can take the likelihood of something happening in to account. The insurance should be taken out to cover the unexpected.
Point duly noted. I'm sure there are others who probably think like me "I'm healthy why do I want to buy critical illness insurance?' It would probably be better to look at it as you stated how it would benefit you in the way of a home mortgage being paid off. This is a good thread worldmachine, thank you.
I got a health insurance that covers about 20 critical illnesses. It's a comprehensive health insurance plan that covers my entire family. The premiums are definitely on the higher side, but I make it a point to pay them. I set aside some money for paying my insurance plans. I've Diabetes and Hypertension flowing in my family genes and I can't afford to neglect. @worldmachine: I fully empathize with your situation and your advice of "covering the unexpected" should be an eye-opener for everyone.
I'm sure you would have gotten some money from the policy that you cancelled @worldmachine, correct? How much did that money help you in covering your mortgage? I'm so sorry that that happened to you though, however, I know that you have learnt and will make a better choice later on if and when you decide to buy insurance again..
Hi @worldmachine. I'm really sorry to hear about your present health condition but thank you very much for this eye opening thread. It is indeed true that we never know when fate decides to challenge our health. Even someone seemingly healthy could end up becoming sick in the end. I'm also paying for a critical illness insurance right now. The coverage is rather comprehensive because it covers more than 50 critical illnesses and has a daily hospitalization benefit if I ever get admitted to the hospital.
The thing with insurance plans is that they feel expensive when we do not have a need for them. Once the need is there, we realize that it's far more expensive and financially exhausting when there is no adequate medical or accident protection. You do not think about costs when buying insurance... you think about what happens in the future. It's all about being prepared. But since not all insurance providers are the same, you have to do your research. Look for a critical illness insurance provider that covers pre-existing conditions regardless of age.
A critical illness insurance cover is of necessity in order to cope with unexpected emergencies. Our country has a form of this insurance cover which recently benefitted my sister's son who had a hole in the heart and required specialised operation in India to the tune of $40,000. This was made possible by this cover which is a cost effective model when you factor in the premiums.
Sorry for the situation you find yourself in. I pray that you will come out of this and stronger. Having insurance is a great way to help overcome unforeseen events. Too bad you did not have it when you needed it most.
