Comments on: Critical Illness Insurance http://gailvazoxlade.com/blog/archives/133 Thu, 09 Feb 2012 02:58:08 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Brian Poncelet, CFP http://gailvazoxlade.com/blog/archives/133/comment-page-1#comment-1118 Brian Poncelet, CFP Sun, 22 Jun 2008 20:24:35 +0000 http://www.gailvazoxlade.com/blog/?p=133#comment-1118 Hi Gail, I have a series of topics about life, disability and critical illness insurance on the Million Dollar Journey starting June 26th (thursday) and for the next several thursdays. Gail, you are right about disability insurance ...get it! Your readers may not know every one who has a mortgage can get coverage! This has no effect on any current disability coverage owned already. Only about 5% of insurance agents talk about disability insurance in any meaning full way. A recent poll at the Toronto Congress Centre by Blue Cross asked about 500 insurance agents "how many sell 10 or more disability policies a year"? About 25 hands went up. Financial advisors score worse! Why? Disability insurance is more expensive, because it pays! Usually about 8 times more likely to pay for a disability (over 90 days) than a life insurance term policy. I'd be happy to go into detail about this topic if you wish. regards, Brian Poncelet, CFP Hi Gail,

I have a series of topics about life, disability and critical illness insurance on the Million Dollar Journey starting June 26th (thursday) and for the next several thursdays.

Gail, you are right about disability insurance …get it! Your readers may not know every one who has a mortgage can get coverage! This has no effect on any current disability coverage owned already.

Only about 5% of insurance agents talk about disability insurance in any meaning full way. A recent poll at the Toronto Congress Centre by Blue Cross asked about 500 insurance agents “how many sell 10 or more disability policies a year”? About 25 hands went up.

Financial advisors score worse! Why? Disability insurance is more expensive, because it pays! Usually about 8 times more likely to pay for a disability (over 90 days) than a life insurance term policy.

I’d be happy to go into detail about this topic if you wish.

regards,

Brian Poncelet, CFP

]]> By: Term Life Insurance PopStar http://gailvazoxlade.com/blog/archives/133/comment-page-1#comment-1117 Term Life Insurance PopStar Tue, 03 Jun 2008 03:46:44 +0000 http://www.gailvazoxlade.com/blog/?p=133#comment-1117 This is a great article. I think critical illness insurance is one of the types of coverages that are often overlooked, especially in the United States. With the possibilities so great that you'll end up with a major illness, it's a wonder more people don't get this type of insurance. I actually like to think that the popularity of CI policies in Canada helps to prove that the health system in the U.S. is one of the best ones in the world. I have heard that many people from Canada buy CI insurance and then use that payout to come to the United States and get the health care they want. This is a great article. I think critical illness insurance is one of the types of coverages that are often overlooked, especially in the United States. With the possibilities so great that you’ll end up with a major illness, it’s a wonder more people don’t get this type of insurance. I actually like to think that the popularity of CI policies in Canada helps to prove that the health system in the U.S. is one of the best ones in the world. I have heard that many people from Canada buy CI insurance and then use that payout to come to the United States and get the health care they want.

]]> By: Dina http://gailvazoxlade.com/blog/archives/133/comment-page-1#comment-1116 Dina Mon, 02 Jun 2008 20:43:32 +0000 http://www.gailvazoxlade.com/blog/?p=133#comment-1116 Great post Gail! I was "saved" by my CI coverage. In 2006, I was diagnosed with stage 1b squamous cell carcinoma, a few months after getting my Critical Illness policy. I submitted my claim and after about 4 months I received my $50000 cheque. My cancer was removed and has never returned. I was able to take the time I needed to heal and not worry how I was going to pay my bills. I was lucky, I did not have to take a lot of time off work, but I had total peace of mind thanks to my critical illness protection. Unfortunately I no longer qualify for coverage but I would encourage everyone out there to look into this getting some critical illness protection. Great post Gail!
I was “saved” by my CI coverage. In 2006, I was diagnosed with stage 1b squamous cell carcinoma, a few months after getting my Critical Illness policy. I submitted my claim and after about 4 months I received my $50000 cheque. My cancer was removed and has never returned. I was able to take the time I needed to heal and not worry how I was going to pay my bills. I was lucky, I did not have to take a lot of time off work, but I had total peace of mind thanks to my critical illness protection.
Unfortunately I no longer qualify for coverage but I would encourage everyone out there to look into this getting some critical illness protection.

]]> By: Geoff http://gailvazoxlade.com/blog/archives/133/comment-page-1#comment-1115 Geoff Mon, 02 Jun 2008 14:21:32 +0000 http://www.gailvazoxlade.com/blog/?p=133#comment-1115 For the benefit of others, just wanted to note that in Canada debt can not be "inherited" - ie you can't leave a whack of insured debts to a loved one (with the exception of a spouse in a joint account setup kind of way). However, that doesn't mean the creditor(s) can't seize all available assets (ie can't owe a mortgage on a house and in the will pass it on to your son and expect mortgage to disappear) Neither Angela nor myself were recommending anyone have NO insurance. However, I know that a lot of people pay literally thousands of dollars for coverage they don't need or vastly exceed their requirements, and at the end of it most do not benefit from this. A single person, with no dependents, needs very little LIFE insurance, though I would recommend disability and possibly CI insurance (possibly). For instance, though Kristin was very generous in having mortgage insurance to pay off her mortgage for her parents when she lived alone if she died, in theory if the mortgage is less than the value of the house her parents would have done just fine selling it (and if not, it's not her parent's problem anyway, it's the banks). Kristin would have saved thousands in mortgage insurance she didn't need. However, insurance can be viewed as an emotional, not logical purchase, and I recognize that but I think it needs to be looked at by the numbers as well, which is really all I'm trying to say. If the numbers make sense to you -- on both sides of the equation - then go for it! For the benefit of others, just wanted to note that in Canada debt can not be “inherited” – ie you can’t leave a whack of insured debts to a loved one (with the exception of a spouse in a joint account setup kind of way). However, that doesn’t mean the creditor(s) can’t seize all available assets (ie can’t owe a mortgage on a house and in the will pass it on to your son and expect mortgage to disappear)

Neither Angela nor myself were recommending anyone have NO insurance. However, I know that a lot of people pay literally thousands of dollars for coverage they don’t need or vastly exceed their requirements, and at the end of it most do not benefit from this. A single person, with no dependents, needs very little LIFE insurance, though I would recommend disability and possibly CI insurance (possibly). For instance, though Kristin was very generous in having mortgage insurance to pay off her mortgage for her parents when she lived alone if she died, in theory if the mortgage is less than the value of the house her parents would have done just fine selling it (and if not, it’s not her parent’s problem anyway, it’s the banks). Kristin would have saved thousands in mortgage insurance she didn’t need. However, insurance can be viewed as an emotional, not logical purchase, and I recognize that but I think it needs to be looked at by the numbers as well, which is really all I’m trying to say. If the numbers make sense to you — on both sides of the equation – then go for it!

]]> By: kristin http://gailvazoxlade.com/blog/archives/133/comment-page-1#comment-1114 kristin Sat, 31 May 2008 17:24:23 +0000 http://www.gailvazoxlade.com/blog/?p=133#comment-1114 you should be able to pay for your bare minimum living expenses should anything happen to you. whether that's through a work disability plan, CI whatever. as for life insurance, if you have no dependents, just don't leave a whack of uninsured debt with no assets for your loved ones to remember you by (don't test the old saying 'never speak ill of the dead' hehehe). you should be able to pay for your bare minimum living expenses should anything happen to you. whether that’s through a work disability plan, CI whatever. as for life insurance, if you have no dependents, just don’t leave a whack of uninsured debt with no assets for your loved ones to remember you by (don’t test the old saying ‘never speak ill of the dead’ hehehe).

]]> By: Melaniesd http://gailvazoxlade.com/blog/archives/133/comment-page-1#comment-1113 Melaniesd Sat, 31 May 2008 12:34:57 +0000 http://www.gailvazoxlade.com/blog/?p=133#comment-1113 "A" that was so well said. A single person should atleast have CI insurance. Life insurance isn't as important when you don't have dependants, but if you puchase a term plan at a younger age while healthy you can get it at an affordable rate and it's usually locked in for that 10 or 20 year term. My parents had me at a young age and are now in their 50s. I worry all the time that one of them is going to become ill. How are they going to pay for expensive medications/treatments? I can't afford to insure them. I learned a long time ago to try not to worry about the things that are not in your control but as I see my friends parents becoming ill or passing away I can't help but think about it. I'm glad I have peace of mind with my coverage that my son won't have to worry about how we are going to pay for care. “A” that was so well said.

A single person should atleast have CI insurance. Life insurance isn’t as important when you don’t have dependants, but if you puchase a term plan at a younger age while healthy you can get it at an affordable rate and it’s usually locked in for that 10 or 20 year term.

My parents had me at a young age and are now in their 50s. I worry all the time that one of them is going to become ill. How are they going to pay for expensive medications/treatments? I can’t afford to insure them.
I learned a long time ago to try not to worry about the things that are not in your control but as I see my friends parents becoming ill or passing away I can’t help but think about it. I’m glad I have peace of mind with my coverage that my son won’t have to worry about how we are going to pay for care.

]]> By: A http://gailvazoxlade.com/blog/archives/133/comment-page-1#comment-1112 A Sat, 31 May 2008 06:53:28 +0000 http://www.gailvazoxlade.com/blog/?p=133#comment-1112 Advising someone who is single not to get insurance because they have no dependants just plain bad advice. Because who are they going to depend on when they get in a jam? No one because they are single! Mom and Dad might not be able to come to the rescue because you’re not a kid anymore. A girlfriend of mine with her own home and a very well paying job one day got very sick. But she doesn’t have any insurance not on her own or through work. So what happened? Well she wasn’t making any money cause she couldn’t go to work. She couldn’t pay her bills cause she wasn’t getting paid. This went on for about two years. So the only thing she had going so her was that she was not in debt before she got sick. So she was able to use up all her available credit to take care of herself. However two years later she is now back to work but something like 80 grand in the hole! Just barely treading water on payments trying to stay afloat. Talk about stressed out this does not help with the recovery process she could relapse anytime cause she’s freaking out so bad. The worse part is that she was sick with something that is covered under all CI plans so if she had of had insurance things would have not turned out this bad. But the problem is you can’t buy insurance after you get sick. Buying insurance when your young, single and healthy makes sense. Because you can definitely get cheap insurance when you’re young and healthy with low cholesterol. If you wait until your married with dependant you might not even qualify or end up having to pay higher premiums because you’re now considered a high risk. Advising someone who is single not to get insurance because they have no dependants just plain bad advice. Because who are they going to depend on when they get in a jam? No one because they are single! Mom and Dad might not be able to come to the rescue because you’re not a kid anymore.

A girlfriend of mine with her own home and a very well paying job one day got very sick. But she doesn’t have any insurance not on her own or through work. So what happened? Well she wasn’t making any money cause she couldn’t go to work. She couldn’t pay her bills cause she wasn’t getting paid. This went on for about two years.

So the only thing she had going so her was that she was not in debt before she got sick. So she was able to use up all her available credit to take care of herself. However two years later she is now back to work but something like 80 grand in the hole! Just barely treading water on payments trying to stay afloat. Talk about stressed out this does not help with the recovery process she could relapse anytime cause she’s freaking out so bad.

The worse part is that she was sick with something that is covered under all CI plans so if she had of had insurance things would have not turned out this bad. But the problem is you can’t buy insurance after you get sick.

Buying insurance when your young, single and healthy makes sense. Because you can definitely get cheap insurance when you’re young and healthy with low cholesterol. If you wait until your married with dependant you might not even qualify or end up having to pay higher premiums because you’re now considered a high risk.

]]> By: Melaniesd http://gailvazoxlade.com/blog/archives/133/comment-page-1#comment-1111 Melaniesd Fri, 30 May 2008 20:58:12 +0000 http://www.gailvazoxlade.com/blog/?p=133#comment-1111 When we were expecting our son we decided to get coverage for critical illness and life insurance. It is expensive but ti's worth every penny to me. If something happens to myself or my husband I know that my there is enough money to ensure my son is well cared for and the surviving spouse won't be burdened financially. A good insurance agent is worth their weight in gold as well! My first policy I bought from a new young agent and I wasn't totally sure I was happy with it. When we signed up with a new insurance company for our home & auto insurance the agent asked about our other policies. He then asked if we would let him take the policys to review and see if he could do better for us. He is fantastic! he pointed out things that we were not aware of in all of our previous policies and made sure we got the best coverage we could afford. Our agent owns his own insurance company and has been in business for 20 years or more. It pays to shop around! Now I need to get a will.... When we were expecting our son we decided to get coverage for critical illness and life insurance. It is expensive but ti’s worth every penny to me.
If something happens to myself or my husband I know that my there is enough money to ensure my son is well cared for and the surviving spouse won’t be burdened financially.
A good insurance agent is worth their weight in gold as well! My first policy I bought from a new young agent and I wasn’t totally sure I was happy with it. When we signed up with a new insurance company for our home & auto insurance the agent asked about our other policies. He then asked if we would let him take the policys to review and see if he could do better for us. He is fantastic! he pointed out things that we were not aware of in all of our previous policies and made sure we got the best coverage we could afford. Our agent owns his own insurance company and has been in business for 20 years or more.
It pays to shop around!

Now I need to get a will….

]]> By: kristin http://gailvazoxlade.com/blog/archives/133/comment-page-1#comment-1110 kristin Thu, 29 May 2008 23:13:38 +0000 http://www.gailvazoxlade.com/blog/?p=133#comment-1110 when i was just on my own, i had death insurance on my mortgage (where the balance would be paid and my parents would have a free house to sell), disability thru my employer and that was it. it was plenty of cash in the end, my parents could mourn me on some beautiful island somewhere. but now as a wife and mom, i no longer get disability thru an employer (despite the importance of my role primarily in the home), sick benefits thru EI covers only lost wages not non-monetary things (how do you put a price on picking up half mushed cheerios off the floor and dressing the cat for fun twice daily). we have life insurance but hey, dead isn't always the worst scenario. i tease my husband that if i were to charge him for what i do in the house, he could never afford me. and i'm not even counting the... well you know! he agrees. :) if i so much as break my ankle, the house comes to a screeching halt, the small income i generate comes to a halt too. how do you insure a part time worker and house mom? when i was just on my own, i had death insurance on my mortgage (where the balance would be paid and my parents would have a free house to sell), disability thru my employer and that was it. it was plenty of cash in the end, my parents could mourn me on some beautiful island somewhere. but now as a wife and mom, i no longer get disability thru an employer (despite the importance of my role primarily in the home), sick benefits thru EI covers only lost wages not non-monetary things (how do you put a price on picking up half mushed cheerios off the floor and dressing the cat for fun twice daily). we have life insurance but hey, dead isn’t always the worst scenario.
i tease my husband that if i were to charge him for what i do in the house, he could never afford me. and i’m not even counting the… well you know!
he agrees. :)
if i so much as break my ankle, the house comes to a screeching halt, the small income i generate comes to a halt too.
how do you insure a part time worker and house mom?

]]> By: Angela http://gailvazoxlade.com/blog/archives/133/comment-page-1#comment-1109 Angela Thu, 29 May 2008 22:18:31 +0000 http://www.gailvazoxlade.com/blog/?p=133#comment-1109 I cannot say that Geoff is not correct. I think it's less important for a single person to get a big insurance coverage. If you are in a relationship and your partner in some way depend on your income to pay rent/mortgage/bills, i.e., have a place to live, that would be different. I cannot say that Geoff is not correct. I think it’s less important for a single person to get a big insurance coverage. If you are in a relationship and your partner in some way depend on your income to pay rent/mortgage/bills, i.e., have a place to live, that would be different.

]]> By: NKM http://gailvazoxlade.com/blog/archives/133/comment-page-1#comment-1108 NKM Thu, 29 May 2008 18:51:41 +0000 http://www.gailvazoxlade.com/blog/?p=133#comment-1108 We had been offered CI by our financial advisor last week and are totally confused as to whether to take it or leave it or what. Thanks Gail - as always you have explained it perfectly and now it's time to make the decision! You rock lady! We had been offered CI by our financial advisor last week and are totally confused as to whether to take it or leave it or what. Thanks Gail – as always you have explained it perfectly and now it’s time to make the decision! You rock lady!

]]> By: Geoff http://gailvazoxlade.com/blog/archives/133/comment-page-1#comment-1107 Geoff Thu, 29 May 2008 17:20:11 +0000 http://www.gailvazoxlade.com/blog/?p=133#comment-1107 Jessie, keep in mind there are risks in being overinsured, especially if you have no dependents. With respect to Gail, insurance is something that should be discussed with a financial advisor. Thirty years is a long time, and the amount of cash you may need to survive on at 55 may be very different from that of 25 when presumably you have few assets, but at 55 you may have a pension, rrsp income, real estate, cash or other investments. In other words, you are betting that you will get a critical illness, but may not have discussed the probabilities of this with your doctor first. The premium (which as gail mentions is not insignicant) may be better served by investing it in the stock market for the next 30. I'm not saying that CI is not worth it, but that contrary to our cautious nature as Canadians there is such a thing as too much insurance. CI is a money making, not losing, venture for the companies that provide it and it's worthwhile to remember this. Jessie, keep in mind there are risks in being overinsured, especially if you have no dependents. With respect to Gail, insurance is something that should be discussed with a financial advisor. Thirty years is a long time, and the amount of cash you may need to survive on at 55 may be very different from that of 25 when presumably you have few assets, but at 55 you may have a pension, rrsp income, real estate, cash or other investments. In other words, you are betting that you will get a critical illness, but may not have discussed the probabilities of this with your doctor first. The premium (which as gail mentions is not insignicant) may be better served by investing it in the stock market for the next 30. I’m not saying that CI is not worth it, but that contrary to our cautious nature as Canadians there is such a thing as too much insurance. CI is a money making, not losing, venture for the companies that provide it and it’s worthwhile to remember this.

]]> By: Jessie http://gailvazoxlade.com/blog/archives/133/comment-page-1#comment-1106 Jessie Thu, 29 May 2008 16:09:44 +0000 http://www.gailvazoxlade.com/blog/?p=133#comment-1106 Hello Gail, Thank you SO, SO much for covering this topic; it one that I feel strongly about and hope many people take your advise. Personally I have chosen to get Long Term Care Insurance first, and will be appliying for CI insurance within the next year. I am young - 25 - and feel that this is one of the best uses for my money, and a realy investment. If you are so inclined I would encourage you to write a blog on LTC insurance as well, and if possible compare it to CI. There are siginificant differences, and depending on peoples situataions, one could be better suited than the other. Of course ideally people should have both. LTC insures my income, I am currently single, so this is imporant! With LTC if anything happens to me - any type of injury where I require care - I will be paid and "income". I am also covered for this through my employer, however it is not portable. This is the key! If I were to leave my employer, then I would not longer be covered under their plan, this way I will always have coverage, no matter what! And at the end of 30 years I don't have to pay any more! That's the way it works - you pay the premium for x amount of years, and then you are done paying, and you still have coverage - FOR LIFE! I encourage anyone, with or without LTC covereage thru their employer, to investigate this option, as well as CI. Hello Gail,
Thank you SO, SO much for covering this topic; it one that I feel strongly about and hope many people take your advise. Personally I have chosen to get Long Term Care Insurance first, and will be appliying for CI insurance within the next year. I am young – 25 – and feel that this is one of the best uses for my money, and a realy investment. If you are so inclined I would encourage you to write a blog on LTC insurance as well, and if possible compare it to CI. There are siginificant differences, and depending on peoples situataions, one could be better suited than the other. Of course ideally people should have both. LTC insures my income, I am currently single, so this is imporant! With LTC if anything happens to me – any type of injury where I require care – I will be paid and “income”. I am also covered for this through my employer, however it is not portable. This is the key! If I were to leave my employer, then I would not longer be covered under their plan, this way I will always have coverage, no matter what! And at the end of 30 years I don’t have to pay any more! That’s the way it works – you pay the premium for x amount of years, and then you are done paying, and you still have coverage – FOR LIFE!

I encourage anyone, with or without LTC covereage thru their employer, to investigate this option, as well as CI.

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