Most people nowadays spend a lot more money than they make. This is partly the fault of banks around the globe, hence, the situation the economics are in today, the Credit Crunch. This has left many people in debt leaving them to sell up and move to smaller homes, having to pay of loans, credit cards and general everyday bills. This is the general state we live in today.
Now, with regard to insurance such as life insurance and illness insurance, people can’t afford it. The reasons for this are 2-fold. connectedhealthcenter First of all, critical illness insurance cover has increased over the years substantially due to medical improvements inducing earlier diagnosis and longer treatments causing the life insurance companies needing to pay out more frequently. The second reason is simply what we first discussed, unemployment has risen to considerable amounts and debts have never been higher.
The general conclusion is that although many people give some thought into critical illness cover, not many people appreciate it to fullest capabilities. A lot of people get it confused with general life insurance cover, others with terminal illness cover and also health insurance. How badly misguided they are. Illness cover is wholly different than these various insurance policies. Illness also covers the important characteristics like mortgage repayments, university payments, bills and general living expenses. This is probably what most people are frightful of for the sake of their family and not necessarily themselves.
Individuals can have the most expensive life insurance and health insurance policy, which is great, but this will not pay for the other aspects talked about above by providing for the family. This can cause a huge amount of anxiety and therefore extend the recovery process. Another benefit of critical illness and life insurance is that it will aid with simpler things such as vacations to try and induce a quicker recovery period.
Although disability income plans are on hand to people, it can be greatly assumed that a financial problem will still occur. From 1983, Critical illness life cover became very popular within countries such as the UK and US, for the sole reason that it pays out a huge lump sum upon diagnosis of a potentially fatal illness.
So the question is whether or not you think illness life cover is too steep? In my opinion the answer is relatively simple. No! It may seem like a real hassle at the time having to pay premiums that can be relatively high even though you don’t think you could get a critical illness. Lets face it, it is not the type of thing you really want to think about. However, if that time did come and you considered the cover but not actually purchasing one, you will inevitably find that the critical illness will only be one thing to worry about along with a vast string of other factors.