It was 5:30 pm on Sunday afternoon when my cell phone rang. I looked at the name on the phone and wondered why Jennifer would be calling me on a Sunday, I answered the phone with trepidation, Jennifer told me that she had been diagnosed with breast cancer but indicated that the cancer had been discovered early.
Her doctor was confident that with quick treatment the cancer could be cured, the doctor recommended that Jennifer take two months off from work to recover from the treatment. I had sold Jennifer a disability policy and a critical illness policy four years earlier. The disability policy would not be effective because of the four month waiting period but the critical illness policy was payable once Jennifer survived 30 days from the date of diagnosis.
We completed the critical illness claims form and submitted them to the insurance company and the claim was approved 31 days from the date of diagnosis. I delivered her cheque to her at her small business as she had gone back to work, when I walked in with the cheque she started to cry, I gave her a big hug and handed her the cheque for $100,000.
Critical Illness Coverage is excellent insurance.
- The insurance companies offer you a choice to pay higher premiums and get your money back if you don’t have a claim.
Here’s how the return of premium works. Suppose you are a 45 year old female in good health, with a good family history who would like $100,000 of coverage. You decide you would like to have coverage to age 75 with premiums for only 20 years. You also like the wider definitions, second condition coverage and waiver of premium in disability. The premium is about $2,350 annually. If you have a claim you will receive $100,000 and the very most you could pay for that is 20 times $2,350 or $47,000. It could happen in the third year instead of the 23rd year.
- There is another option that you can choose. How about we GUARANTEE that you get a check back from the insurance company! If you pay about $3,700 annually instead of $2,350 you will get one of three possible cheques:
You are diagnosed with a covered condition and the company pays $100,000
You die before 75 and the company pays a death benefit to a maximum of $74,000
You live to age 65 with no claim and the insurance company returns all the premiums you paid – which means you will get a cheque for $74,000