I saw this advert in the ‘thesundaytimes’ today. This form of insurance is known as “Early payout plan” that pays upon the dignosis of critical illnesses at an early stage. I am not against such plans although I would think that a comprehensive medical plan is more important & the importance of this type insurance should be ranked one of the last.
I shall not go into the product itself but I saw a few points in the advert which I think it should set you thinking the need for it if you are in such a position.
I had underlined the key pointers which were summarised as a 12-hour surgical operation that amounted to $30,000 was still neccessary. A premium of over $70,000 had been paid over three years & an amount of $200,000 would had been paid if it was successfully claimed. I worked that to be an premium of $23,333.33 per annum for a coverage of $200,000?!!
Now let’s see…. the cost of operation cost $30,000. If you can afford almost $23,000 in premiums annually. Should you just self-insured that ‘$30,000’ and get a comprehensive ‘As-charged’ shield plan that cost less than 10% of what it cost?
Next, I seriously have no idea what she is buying if it cost $23,000 annually to be covered for $200,000! In my 10 over years of experience in financial services, I can safely put it as the most expensive plan for $200,000 of coverage with all perks thrown in would cost no more than a quarter of $23,000.
I am not saying that Early payout plans are not important but there are definetly much better option than this. In my personal opinion, she could be ‘over paying & under insuring’. Similarly to my previous post, I would still encourage you to review your existing coverage.