Insurance is one subject everyone has to talk about at some point in their lives. It does not matter whether you are old or young, or whether you are doing a white collar job. The subject of Insurance is inevitable. You need to have your car, your life and so much else insured. And Insurance is indeed very important because it secures you against the risks of this life, at least financially. And perhaps the most important of all types of insurance is Life Insurance. In the case of your death, your dependants are secured so that they can still live comfortably in your absence.
Recent events have attracted more attention towards life Insurance. For example, what is the difference, in Insurance terms, between actual death and terminal illness? Your Personal Financial Mentor sheds some light on this subject, which has stirred a lot of debate among insurers lately.
A recent study has shown that many people are concerned about terminal illness even more than actual danger of death as far as their Insurance is concerned. The question is why is this so?
Well, the danger of Critical illness is very grave, even when you survive it. First of all, the net worth of the average person is usually not enough to for their Insurance to take care of all the medical costs. When faced with Critical illness, one usually has to dip into their own pockets to foot the medical bills. This is obviously not good for their finances if they recover. And even if they don’t it is still not good because their families will be left with financial problems.
According to statistics, a very big percentage of people who survive Critical illness usually find themselves being unable to work for up to six months after recovery. Depending how long they have been ill, this could total to one year or even more. What this means is that for that period of time, one will not be earning any money. Therefore, one may have to dip into their retirement or pension money early.
Critical illness Insurance is being offered nowadays by a number of Insurance companies, but most of the covers are not comprehensive, and knowing how Insurance companies behave, one can not be too sure of compensation.
Concerns about Critical illness are unlikely to go away anytime soon. Perhaps it is best to be prepared for anything at any time.