Life Insurance - worth getting it?

[Slava]

Originally Posted by Art Vandelay

My agent keeps pushing us to get Critical Illness insurance. Anyone have this? It seems way too expensive for my liking.

I have a couple of CI policies and have them for my family as well. I don't know what your circumstances are but you can get coverage that is pretty cheap (as in under $20 per month). Clearly as you inch higher to the 1-2 million dollar mark the price goes up. My coverage is nowhere near that figure, bit in the event something happens I am covered!

Originally Posted by Shazam

I have disability as well. $40/month for $60K of tax free coverage per year.

Doesn't cover diseases though.

You might want to be careful. Some of these policies that don't cover illness then group things like repetitve strain issues as illness rather than injury. Depending on what you do for a living this can be a problem.

[Slava]

Originally Posted by yads

That's pretty good, I've heard quotes in the 300s.

Depending on what you do for a living and such that could be really high or could be a "Cadillac" policy though. The premium is different depending on a variety of factors and there are also different riders you can add or delete based on your choice.

[Shazam]

Originally Posted by Slava

You might want to be careful. Some of these policies that don't cover illness then group things like repetitve strain issues as illness rather than injury. Depending on what you do for a living this can be a problem.

Yup, there is a well-defined list of what they will cover and what they won't. And the rate does vary greatly depending on occupation. RSI isn't as common and debilitating as one would think, though.

I just want it for things like if I get into a car accident and am disabled for a period of time.

[Slava]

^As long as you know what you're buying it's all fine. About RSI not being all tha lt debilitating though I would hazard a guess that the millions of carpal tunnel sufferers would disagree!

[Shazam]

It actually isn't common for IT people to get it; it's users that it's common in.

[Slava]

Originally Posted by Shazam

It actually isn't common for IT people to get it; it's users that it's common in.

Fair enough, but it's just an example and I have no idea what you do for a living. I just picked a common RSI.

[Shazam]

Us IT folks are very, very low risk

[Deegee]

Not all Mortgage Insurance is underwritten when you send in a claim.

The monthly products our Credit Union offers is underwritten when you apply and I can say speaking with experience in paying out claims it is relatively smooth, quick, and easy.

That being said, almost all of our current open claims are actually disability claims rather then life claims.

I'm not really looking for an arguement on what is better and why, just looking to clarify that while you may not agree with the product, making the blanket comment that ALL Mortgage Insurance is underwritten at time of claim is incorrect.

[Shazam]

I would expect that the product would have to change if it was to survive in the market.

[Slava]

Mortgage insurance in general survives because it's very easy for the applicant. Same with the banks selling CI coverage; it's easy and gives the applicant peace of mind.

It is true that there is some coverage that requires underwriting or at least more underwriting. The average guy is still best served in seeing an independent broker though. Then you have someone who is educated in these matters and can provide a wide variety of options. Even the mortgage insurance that is underwritten still faces many of the other issues identified in this thread.

[MoneyGuy]

I've had to talk clients out of buying insurance. If you need it, insurance is one of the most important parts of your financial plan. This may be young folks in their 20s with small assets, little disposable cash and no dependents.

I've also had to tell some clients that I would not deal with them unless they had insurance. This might be men in their 30s and 40s with young families who don't want insurance. If they died their families would be in a whole lot of trouble.

[krazycanuck]

TV and movies have taught me alot. Including: once you get life insurance a family member is more likely to attempt to kill you to fund their coke habit. Don't get it!