I was just visiting my local bank. All across the banker’s desk were glossy flyers advertising critical illness and mortgage insurance. Behind the banker’s desk, there was a lovely poster which again, promoted critical illness and mortgage insurance.
The promotional material paints a very nice picture of what critical illness and mortgage insurance can do for you; should things go terribly wrong.
The narrative went something like this:
“I was diagnosed with terrible cancer…Thank goodness I had critical illness insurance with (Insert Name of Bank/Insurer here). Thanks to (Insert Name of Bank/Insurer here) I was able pay off my debts and live with dignity”.
The photo featured a happy and smiling family. Other photos showed a person who appeared to have a very serious and worried look on their face. Either way, these advertisements really drew on the heart strings.
In theory, critical illness and mortgage insurance policies are fantastic. In theory that is. When you get diagnosed with a “critical illness“, or with a “disability“, then your insurer will automatically pay out a lump sum cash benefit. No questions asked. This sounds great; doesn’t it!?