How the Insurance Industry is Changing for the Better
There is a new type of insurance package available that is dramatically changing the insurance industry for the better.
Getting insurance coverage done right has always been a challenging thing for almost everyone apart from the rich.
Once you get a little older, coverage costs go up and unless you are willing to commit a substantial amount of discretionary income, it is traditionally been difficult to make sure that you are adequately covered for all risks.
Here are the typical ones to watch out for…
- You buy life insurance to cover your family in case you die
- You buy disability insurance, to make sure your income continues if disabled
- Buy insurance that pays a lump sum of money should you be diagnosed with a critical illness
The problem has always been that to cover yourself in all areas has been overly expensive. We all have to save for retirement and typically there are only so many dollars to go around each month.
So we pick and choose our coverage with the hope that we bet on the right insurance horse (so to speak). Life insurance coverage doesn’t do us a lot of good when we are suddenly disabled and unable to pay the premiums on it due to a disability.
So what’s new? For the first time I can remember in my 30 years in the industry, a major supplier has come to the table with a packaged product that gives buyers the insurance that they need in all three categories. Not only does it take out the risk of having the wrong insurance, buyers also save up to 30% of the costs of buying the individual products separately!
Here’s how it works…
Instead of buying a lump sum of insurance, you buy into what is effectively a pool of money. You can use it for one or a combination of claims should you die, become disabled or be diagnosed with a critical illness.
Let’s say for instance that your 45 years old and fall off your roof while putting in a new gutter guard you bought at Costco.
You may need up to a year to fully recover. Assuming you had a $250,000 pool of coverage, you’d receive $1250/m for up to 2 years while recovering.* The money that was paid out would come off of your total pool.
The same type of scenario is going to work with regards to Critical Illness coverage. If you are diagnosed years later, the policy will pay out $62,500 per claim.
When you finally do die, your estate will receive the balance of what is left in your pool.
Is this type of insurance right for you? Quite likely but of course every situation is unique and has to be looked upon as such.
If you’d like us have a look at your individual coverage, just give our office a call and we’ll be glad to overview things with you.
Mark
P.S.
Did you know that the chance of dying before aged 65 is 6.4%
Disability before 65 is 32.6% Critical Illness before 65 is 26.6%
The probability of any one of those things happening before age 65 is 56.2%
E.O. & E.
*After standard waiting period ** Insurance included is term to 65
Photo credits: http://www.flickr.com/photos/73645804@N00/2959833537
