| The critical illness insurance market in | | | | that many people self diagnosed the |
| South Africa may have been a significant | | | | disease before buying a critical illness |
| one in the history of critical illness | | | | cover. As a matter of fact, underwriting |
| insurance. Critical illness insurance | | | | may have thus been unable to unveil |
| had been an origin of South Africa and | | | | these illnesses. The claims may have |
| was gradually propagated around the | | | | therefore been rejected. As a measure of |
| world. Nowadays, critical illness cover | | | | precaution, some policies had included a |
| can be considered as one of the most | | | | waiting period. The waiting period may |
| sought insurance policies worldwide. | | | | disallow payments to be made quickly. |
| According to Munich Re, 2000, the extent | | | | Some waiting period may even reach |
| of life policies accelerated with | | | | around six months and can also be |
| critical illness may have been in | | | | applied to specific illnesses like |
| decrease these days. | | | | cancer and multiple sclerosis. |
| As per Munich Re, 2000, during the late | | | | Additionally, the introduction of |
| 1980's around 60 percent of life | | | | standalone critical illness cover in the |
| policies could have been related with | | | | South African market may not have been |
| critical illness. Nowadays, this value | | | | successful. Its high price tag and the |
| may have decreased to 25 percent. | | | | toughness of certain rules regarding |
| However there is a reason that may | | | | definitions of certain illnesses may |
| explain this fact. In South Africa, | | | | have led standalone critical illness |
| major medical expenses (MME) policies | | | | cover to unpopularity. Also, problems |
| may be taken out as an additional | | | | related to legislation and tax may have |
| benefit to cover health expenses. The | | | | further complicated the product design |
| MME can account for the lack of | | | | and thus obliging its pricing to stay |
| facilities provided by the healthcare | | | | high. Looking at this, people may have |
| system in South Africa. By doing so, | | | | rather preferred to choose life |
| some people may have lost interest in | | | | insurance related critical illness or |
| critical illness insurance. Furthermore, | | | | mortgage related critical illness |
| the MME cover may be much affordable | | | | covers. There may be no company that |
| than critical illness insurance. It may | | | | offers standalone critical illness cover |
| also provide cover for many conditions | | | | nowadays in South Africa. |
| unlike critical illness cover where the | | | | As seen above, there may have been a |
| conditions are restricted to a certain | | | | relative downfall in critical illness |
| number. MME can also be offered as a | | | | insurance in the South African insurance |
| family protection plan. | | | | market. People have discovered about the |
| Moreover, insurers may have encountered | | | | MME. But is the amount of cover as |
| another problem after the introduction | | | | significant as with critical illness |
| of critical illness cover in South | | | | cover? A vital point still remains that |
| Africa. There had been an elevated | | | | critical illness cover may not only save |
| number of claims recorded soon after the | | | | one's life but may also help to |
| start of policies. As the majority of | | | | accommodate the person and his family |
| early claims mat have been for multiple | | | | with his changed lifestyle. |
| sclerosis and cancer, it may be assumed | | | | |