Serious critial illness policy

[kkbutterfly]

agent cunning try to sell critical illness to my in law.
in law ask my advise.i say NO.stay away.
here the detail.
policy is near $100+ a mth.
payout $500 K upon dignose of illness.

why I tell my in law a big NO
1) payout only upon final stage illness etc cancer/kindey failure,heart failure.
when a person is in end stage..whatever $ come in also no use. if payout at early stage, I would say make sense. but premium is going to double up.

2) her salary is $2k. take home pay $1600
CI $100
hospitalization plan $40
permeant disability $15
saving plan $30
that add up a total of 11% of money going into insurance.
no insane will spend 11% of their salary on insurance.
if salary is $5k, the ball game is different.it only took up 4.6%

----------------------
the agent reply to (1) :
the payout can benefit the next of kin family should the insured died shortly after diagnosed.

the agent reply to (2) :
some cleaner earning $1200 a mth can spare aside $250 a month on insurance to well protect themselves.
--------------------------------

I have no comment on his reply on (1)
on (2):
my thought is this cleaner did badly on his maths calculation and his/her understanding of finance. that's is why working as cleaner.

the agent tell my in law to get more supplement instead if she find $100+ a mth is expensive for this coverage.
*I think the agent sound sarcastic to me*

any body has thought to share?