by Guest » Thu Aug 22, 2013 05:36 am
We just don’t know what is going to take place in future so it’s better to always remain protected. But my question is, is CI insurance really worth the money involved. What if I save that money or invest in other good return schemes, instead?
Or should I concentrate on getting insured when permanent disability strikes by having a constant stream of income up to a certain age (say 65)?
Or should I concentrate on getting insured when permanent disability strikes by having a constant stream of income up to a certain age (say 65)?
Posted: Fri Aug 23, 2013 01:05 am Post Subject:
What if I save that money or invest in other good return schemes, instead?
What if you put $1000 in your plan today and are diagnosed with cancer tomorrow? No matter how good the "return scheme" may be, it won't work as expected.If you have the world's only working crystal ball, perhaps you can divine the answer to your question. Mine broke last week.
Insurance is a bet. You bet you will file a claim, the insurance company bets you won't. If you win the bet, the insurance company may pay more or less as a claim than you paid in premiums. If you lose the bet, you traded a small amount of money for a potentially larger payment. You can still save all the money you want aside from that.
If you are looking for a specialized plan, like Critical Illness, then my recommendation is to choose one that offers a 10-year return of premium provision. If you have no claims, they send you a check for all the money you paid them (they get to keep the investment return). If you have one or more claims, but their payments are less than what you paid, you get a partial refund of the difference. Theoretically, you have nothing to lose . . . but you are forced to keep the policy for 10 years if you want the refund. The good news is that these policies are typically low cost -- a few hundred dollars per year, depending on the level of benefits provided.
Or should I concentrate on getting insured when permanent disability strikes by having a constant stream of income up to a certain age (say 65)?
If you wait until you become disabled to purchase insurance, you will have waited at least one day too long, and no amount of money will purchase you a disability income policy at that point in time.What you need to do is find a local independent insurance agent and have a needs analysis completed. Based on that analysis, your need for various forms of insurance will be identified and the agent will recommend what he/she believes is appropriate for you. You weigh the evidence and decide what to do.
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