Nowadays, Most Policies May Cover Up To 15 To 20 Critical Illness Conditions

Category: Finance, Insurance.

The Canadian critical illness market experienced a growth for the creditor critical illness insurance. According to Munich Re, creditor insurance was, 2000 launched in the year 1997 and since then a considerable improvement had been noted in the past two years.

More precisely, with critical illness cover acting as a protection for mortgage. As a matter of fact, in the year 2000, the premium amounts recorded could have summed up to Canadian Dollar 12 million. When individual critical illness insurance was initially marketed, companies covered 10 critical illnesses. This could represent a 100 percent increase in total premium value since the year 199 Canadian insurance companies had started to provide cover for a wide range of critical illness conditions. This helped them compete in the insurance market. The group market had been in contrast, with the individual critical illness insurance, followed a different trend. Nowadays, most policies may cover up to 15 to 20 critical illness conditions.

Fewer critical illnesses with less exclusion made the policy. Having a simple policy meant easier marketing and presentation. Basically, the creditor critical illness policy covered three major conditions: cancer, heart attack and stroke. The exclusions may have been less as compared with a policy which covered up to 20 critical illness conditions. The premium payment rates in Canada offered by association, group or creditor critical illness may be non cancelable for the life of the policy. However, there may be certain things to remember related to critical illness insurance in Canada as compared to more successful markets like UK and South Africa. This can be an advantage for the critical illness policyholder.

Furthermore, similar to the early times in the UK, critical illness definitions in Canada had not already been standardised. But from a reinsurer s point of view, this can be an additional risk as the premium values may be normally high. Competition over the market had made companies to lower their prices and simplify their definitions. But at the moment a policyholder makes a critical illness claim this could cause a problem. From a marketing point of view, this could be a definite advantage. It could even lead to customer dissatisfaction. Moreover, insurers had started to realise about how important benefits paid as lump sums are to people.

The reason behind could be that the claims department would find it difficult to understand the softer definitions. People may also expect to have value added services on top of the claims awarded. Services may include independent specialist or physician intervention. As a matter of fact, insurers may be pondering over the idea of offering services along with the critical illness lump sum. Additional services may also comprise referral to a specialist according to the critical illness claimant s condition and otherwise if the claimant wishes to undergo treatment abroad, the insurer may help with travel arrangements and payment guarantees. The coming years have been predicted to be rather fruitful for the Canadian insurance market.

Critical illness insurance in Canada has not yet reached its maturity. With people starting to know about critical illness insurance, the policy could sell well if a high profile company comes up with a new and attractive critical illness policy design.

Read more...

Life Settlements Are Relatively Simple - Bessie Calfee's Finance and Insurance blog:

Life settlements generally work best for people who are in their retirement years or meet certain criteria that make purchase of the life insurance policy attractive to the buyers. In fact, over a third of all life settlements fall into this category.

This Fact Is Clearly Evidenced By The Many Complaints Received By The Short- Term Insurance Ombud - Rosalie Catoe's Finance and Insurance blog:

Consumers often rely on the travel insurance available as part of their credit card facility, medical aid cover or insurance policies, but this could leave travellers stranded in a foreign country without the funds to receive adequate assistance or medical treatment.

Auto Insurance Is Not A Luxury But A Necessity - Natalie Tewell's Finance and Insurance blog:

Auto insurance is not a luxury but a necessity.