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