Another alternative to account for the fact that more and more critical illness conditions may be included in the critical illness policy is to add TPD (Total and Permanent Disability) as benefit triggers. Loss of Independent Existence (LIE) could also be added.
TPD is the inability to perform any occupation. Research in the UK can demonstrate that the major of critical illness policyholders may not understand this clearly. As a matter of fact, around 50 percent of critical illness claims related to TPD may have been turned down in the year 1998. Also, LIE is the inability to perform three to six daily tasks. It can be considered similar to Long Term Care (LTC). Furthermore, another form of critical illness included in many policies could be Terminal Illness (TI). Terminal Illness can be described as any situation that may consequently lead to the death of the insured person within 6 to 12 months.
TI can also be joined with the acceleration benefit of a critical illness cover, as an aim to obtain a TI benefit. This type of cover may not be expensive as the higher death rates may crop from a critical illness such as cancer. The benefit cost may be lower in respect to the original sum insured. Terminal Illness may not be appropriate if combined with standalone critical illness plans. These standalone plans may be designed as living benefits. In this connection, the terminal illness cover may act as an additional death cover. So, knowing when a terminal illness began may be difficult to tell, so the requirement of a survival period may become problematic.
At first, when critical illness cover made its apparition, little benefits may have been given, especially under a rider. In South Africa, the critical illness sum amounted to SAR 25, 000 or around 25 percent of the whole sum insured. This value was fixed as it may have been the cost of a bypass surgery at that time. Gradually, these amounts increased. Actually, in the UK, the critical illness benefit on certain policies might be around GBP 1 million and sometimes more. It may be towards any insurance company’s advantage that wants to sell critical illness policy to limit the provision of excessive benefits. High price tagged covers may only be given after sound financial underwriting before issuing the cover. This may not only apply for critical illness covers but also to other existing types of policies.
In the US, a rational amount of USD 200,000 may be insured and may not exceed five times the insured’s salary. This is company wise, when an important member suddenly falls prey to a critical illness. Thus, the amount insured for this key man may be higher. In regards with this, the critical illness policy may be used as a means to alleviate certain financial disorders a medium sized company, for example, may have. Therefore, the benefits may be awarded directly to the company by the critical illness insurance.
Critical illness insurance has been evolving as years passed by. Once an unknown type of insurance, now it stands as one major share of revenue in the insurance industry. Key marketing procedures may have made of critical illness insurance one of the most sought covers worldwide today.
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Some Historical Figures of a Critical Illness Such as Cancer
By: Mike Armstrong | 07/08/2007 | Insurance
Critical illness cover is one among the most sought insurance policies in the UK. 1 in every 3 men may suffer from a heart attack at a point in his life. Seeing the growing risks of falling ill and being concerned about the security of their family more and more people have started to seek for critical illness insurance. Many life threatening diseases exist. Let’s see some figures and explanations about one of them, cancer.
Cancer Leads Critical Illness Claims in the UK
By: Mike Armstrong | 12/09/2007 | Insurance
There are various critical illnesses that affect people in the UK. Insurance companies used to cover seven major critical illness conditions but gradually, some of them have started to cover around 30. Even if medical technology has progressed considerably, critical illness cases continue to remain an everyday fact. Cancer can be considered as the critical illness responsible for around three quarters of the claims in the UK. Let’s see at some statistics.
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By: Mike Armstrong | 24/10/2007 | Insurance
The survival period can be very important in a critical illness policy. So let’s have a look at the survival period in detail. To obtain payment from additional critical illness cover, it may be wise to make an agreement about a survival period. The survival period can be described as the time after which a critical illness occurs when the insurer cannot award the payout.
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By: Mike Armstrong | 07/08/2007 | Insurance
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By: Mike Armstrong | 12/09/2007 | Insurance
While the chances of living a critical illness are increasing, the chance to be affected by a critical illness may still remain imminent. People in the UK may be continuously suffering from cancer, stroke, heart attack, multiple sclerosis and others. A critical illness such as cancer is common among women whilst heart attack shows itself as may be the major critical illness affecting men. Here are some statistics that may shed some light over the subject.
Critical Illness Insurance Developments and Statistics
By: Mike Armstrong | 05/10/2007 | Insurance
Standard Life one of the most famous insurance companies in the UK had revealed its reports for the year 2005. Around 82 percent of critical illness claims may have been successfully paid since the year 2005 by Standard Life. These claims may have a reached a total of around GBP 20 million. Compared to the year 2004, only around 80 percent of critical illness claims could have been paid.
Critical Illness Cover as it Should be
By: Mike Armstrong | 24/10/2007 | Insurance
For some time, there may have been some analysis regarding claims on critical illness products. Figures may not be as accurate so that a sound study could be made about the rate at which people made critical illness claims. However, results were managed to be shown. The critical illness risk over a general population quantity was derived. Therefore this result was compared with the expected results which could have shown more or less the critical illness incidence rate statistics.
Stats That Might Encourage you Taking Out a Critical Illness Cover
By: Mike Armstrong | 07/08/2007 | Insurance
When critical illness insurance came into the UK during the mid 1980’s, people did not know a great deal about it. Some companies tried to market critical illness insurance but were unsuccessful. The real success came in the 1990’s with over 100,000 policies sold. Gradually critical illness cover became popular. Thus, in the year 1997, around 633,000 policies sales were already registered. By the end of 1998, a sum of 2.25 million critical illness policies could be counted in the UK.
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By: Mike Armstrong | 17/01/2008 | Insurance
Critical illness cover first made its appearance in South Africa during the year 1984. At that time critical illness cover was a merely raw product. The insurance market had yet to propagate the product and people did not know about it.
Decrease of Critical Illness Sales in South Africa
By: Mike Armstrong | 17/01/2008 | Insurance
The South African market had not taken much time to adopt critical illness cover. The success of critical illness cover in the South African market may have been one worth considering. Should it not have been this way, critical illness cover might not have reached worldwide destinations as successfully as we see nowadays. However, Munich Re 2000 affirms that accelerated critical illness policies may be enduring a downfall recently. Let’s see.
Critical Illness Insurance in the South African Market
By: Mike Armstrong | 17/01/2008 | Insurance
The root of critical illness insurance lies in South Africa. Critical illness cover became a must as the health care system at that time in South Africa could not cope with the costs for critical illnesses. The idea stemmed from a discussion between a surgeon and the chief executive of a life office. Since then critical illness cover in South Africa had been one of the most prolific markets around the world. Let’s have a look.
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By: Mike Armstrong | 17/01/2008 | Insurance
Critical illness cover appeared in East Asia during the year 1988. Since then, it may have been a success for the market. Besides, countries such as Malaysia, Hong Kong, Singapore and Taiwan all form part of the East Asian insurance industry. Companies in nearly all these countries may have been marketing critical illness cover successfully. Let’s have a look at the development of critical illness cover in East Asia.
Useful Information About Critical Illness Cover in East Asia
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The Expansion of Critical Illness Cover in Canada
By: Mike Armstrong | 17/01/2008 | Insurance
The creditor critical illness cover appeared in the Canadian insurance market during the year 1997. This type of critical illness cover may have then been combined to mortgage protection insurance. Canadian dollar 12 million may have been recorded during the year 2000, accounting for premium amounts due to creditor critical illness cover. This amount may have represented a 100 percent increase in premium value since the year 1997.
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By: Mike Armstrong | 17/01/2008 | Insurance
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