9 Top Ways to save on Critical Illness Insurance
People often complain that Critical Illness insurance is very expensive, but we will explain how to save when you buy a Critical Illness Insurance policy.
- Start Young– Most people start thinking of Critical Illness insurance when they start getting older, however the truth is the younger you are when you take the insurance policy, the lower the premiums are. So, it makes sense to start early.
- Get a combination of Life and Critical Illness insurance– Buying Life Insurance with Critical Illness advance payment will reduce costs. You pay more when you buy two separate policies.
- Use the return of premium rider– The return of premium rider may increase your premium in the short term, but you will save more in the long term since you get your money back after a pre-defined period if you have not made a claim. The return of premium rider makes Critical Illness Insurance a win-win for you. You get your money back if you do not make a claim, so the insurance is like forced savings, and on the other hand, if you do fall ill, you have coverage.
- Scope of Illnesses– Make sure you include those diseases in the policy of which you have family history or are high-risk. Different policies exist to cover different illnesses.
- Stay fit, save money– Your BMI (body Mass Index) is used to calculate premiums. Your current state of health will be used by the insurance company to determine your premium. The better shape you are in, the lower your premium
- Do you smell smoke?– Smokers have to pay higher premiums than non-smokers
- Watch out when you buy– Age is an important factor when insurance companies decide the premium amount. It matters when you buy insurance in a particular calendar year. For instance, say you turn 45 this 31st December, if you buy insurance in the first six months of the year, your age will be rounded off to 44, whereas if you buy it in the second half of the year, premiums would be calculated as if you are 45. It would therefore be wiser to buy it earlier in the year than later.
- Riders– Check out which riders are included in your policy. You may be paying for riders you don’t need, yet they have been included.
- Always compare– Before buying a Critical Illness Policy, compare all options available and from several providers. It is a good idea to review these options with a Financial Planner.
The Majdoub Group is very experienced in this area and welcome questions, enquiries and comments. We are here for you. Below are our coordinates.
About the writer
Meiz Majdoub, B.Comm, is a financial professional with over 30 years of experience and is accredited with a CLU, CH.F.C. He is also a member of the Conference for Advance Underwriters (CALU). and the Estate Planning Council Of Ottawa. He has helped individuals, organizations and corporations attain their goals in the areas of Financial & Estate Planning, Insurance, Living Benefits and Employee/ Group Benefits. He can be reached at: 613-749-4007, or email@example.com.