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