Is it wise to insure for critical illness…?

After viewing a very sad story recently I would say – NO. Now this is not to be confused with the issue of health funds, what I am referring to are those policies which supposedly pay your bills (mortgage, utilities, etc…) in the event of you developing a critical illness and being prevented from being able to go to work and earn your money.

Of course the best health insurance lead I could give you is to have adequate health cover for yourself and the family, but is it worth covering yourself for unlikely situations…?

Critical illness cover very rarely will payout in the event of you needing it because the stipulations tend to be too narrow and you will not fall in the categories that they list. Only after you have paid in to the policy for several years though do you find out. This fellow I saw had an aneurism and could not work due to the fact that he had a ticking time bomb in his head and was awaiting surgery. His critical illness cover – paid for over 12 years – refused to cover his mortgage payments because they ruled his condition was not debilitating enough…

And how did they arrive at this ridiculous decision…? one of the boxes he had to tick was that he was able to bathe himself and feed himself and this, in effect, cancelled him out for any cover payout. Unfair…? you bet! he was in danger of literally falling down dead at any second but still they ruled against him using that very specific clause.

So no, forget about critical illness cover and instead save the money in a jar, under the bed or in a savings account. At least you will be able to get at it when you need it…

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