Your ultimate insurance guide


A Downfall in Critical Illness Insurance in South Africa

The critical illness insurance market inthat many people self diagnosed the
South Africa may have been a significantdisease before buying a critical illness
one in the history of critical illnesscover. As a matter of fact, underwriting
insurance. Critical illness insurancemay have thus been unable to unveil
had been an origin of South Africa andthese illnesses. The claims may have
was gradually propagated around thetherefore been rejected. As a measure of
world. Nowadays, critical illness coverprecaution, some policies had included a
can be considered as one of the mostwaiting period. The waiting period may
sought insurance policies worldwide.disallow payments to be made quickly.
According to Munich Re, 2000, the extentSome waiting period may even reach
of life policies accelerated witharound six months and can also be
critical illness may have been inapplied to specific illnesses like
decrease these days.cancer and multiple sclerosis.
As per Munich Re, 2000, during the lateAdditionally, the introduction of
1980's around 60 percent of lifestandalone critical illness cover in the
policies could have been related withSouth African market may not have been
critical illness. Nowadays, this valuesuccessful. Its high price tag and the
may have decreased to 25 percent.toughness of certain rules regarding
However there is a reason that maydefinitions of certain illnesses may
explain this fact. In South Africa,have led standalone critical illness
major medical expenses (MME) policiescover to unpopularity. Also, problems
may be taken out as an additionalrelated to legislation and tax may have
benefit to cover health expenses. Thefurther complicated the product design
MME can account for the lack ofand thus obliging its pricing to stay
facilities provided by the healthcarehigh. Looking at this, people may have
system in South Africa. By doing so,rather preferred to choose life
some people may have lost interest ininsurance related critical illness or
critical illness insurance. Furthermore,mortgage related critical illness
the MME cover may be much affordablecovers. There may be no company that
than critical illness insurance. It mayoffers standalone critical illness cover
also provide cover for many conditionsnowadays in South Africa.
unlike critical illness cover where theAs seen above, there may have been a
conditions are restricted to a certainrelative downfall in critical illness
number. MME can also be offered as ainsurance in the South African insurance
family protection plan.market. People have discovered about the
Moreover, insurers may have encounteredMME. But is the amount of cover as
another problem after the introductionsignificant as with critical illness
of critical illness cover in Southcover? A vital point still remains that
Africa. There had been an elevatedcritical illness cover may not only save
number of claims recorded soon after theone's life but may also help to
start of policies. As the majority ofaccommodate the person and his family
early claims mat have been for multiplewith his changed lifestyle.
sclerosis and cancer, it may be assumed



1 A B C D 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111