The Need and Evolution of Critical Illness Insurance.
-
Upload
wwwfinancialplanningindubaicom -
Category
Health & Medicine
-
view
508 -
download
1
description
Transcript of The Need and Evolution of Critical Illness Insurance.
![Page 1: The Need and Evolution of Critical Illness Insurance.](https://reader038.fdocuments.us/reader038/viewer/2022110119/55646b2ad8b42a90338b5393/html5/thumbnails/1.jpg)
The Need and History of Critical Illness
Insurance by www.financialplanningindubai.com
![Page 2: The Need and Evolution of Critical Illness Insurance.](https://reader038.fdocuments.us/reader038/viewer/2022110119/55646b2ad8b42a90338b5393/html5/thumbnails/2.jpg)
Way back in 1983....Apple designed the Iphone Prototype, but there was another significant creation, which has changed the
world we live in..Image Source : http://www.businessinsider.com/the-original-iphone-2011-12
![Page 3: The Need and Evolution of Critical Illness Insurance.](https://reader038.fdocuments.us/reader038/viewer/2022110119/55646b2ad8b42a90338b5393/html5/thumbnails/3.jpg)
Dr. Marius Barnard
Designed and launched Critical Illness Insurance
in 1983
![Page 4: The Need and Evolution of Critical Illness Insurance.](https://reader038.fdocuments.us/reader038/viewer/2022110119/55646b2ad8b42a90338b5393/html5/thumbnails/4.jpg)
About Dr. Barnard• Marius Barnard, a South African cardiac surgeon and inventor of critical
illness insurance was born in 1927.
• Dr. Barnard, with a team of surgeons headed by his brother Dr. Christiaan Barnard performed the world's first human-to-human heart transplantation in 1967
• He had witnessed the financial hardship his patients went through, during and after the treatment of a Critical Illness, and approached various insurance companies to design a new product to protect people from financial hardships, when diagnosed with a Critical Illness.
• His argument was that "as a medical doctor, he can repair a man physically, but only insurers can repair a patient's finances".
• Thanks to his efforts, on 6th October 1983, the first Dreaded Disease Insurance was launched in South Africa.
![Page 5: The Need and Evolution of Critical Illness Insurance.](https://reader038.fdocuments.us/reader038/viewer/2022110119/55646b2ad8b42a90338b5393/html5/thumbnails/5.jpg)
What Prompted him to Create this Cover?• Medical Research confirms that
at least 70 percent of us will one day be told by our doctor that "You have had a heart attack, a stroke or perhaps cancer".
• The good news is that most of us will survive, as a result of highly skilled physicians, modern medical equipment, procedures and facilities, but at a cost.
• One-third of the cost is direct medical and the rest indirect, in the form of early retirement, home nursing, building alterations etc.
![Page 6: The Need and Evolution of Critical Illness Insurance.](https://reader038.fdocuments.us/reader038/viewer/2022110119/55646b2ad8b42a90338b5393/html5/thumbnails/6.jpg)
Questions, following the shock!!!
Whenever he broke the news to any of his patients about their critical medical condition, after the initial shock, the following questions usually followed;
• Can I be treated?
• Will I be cured?
• What will the cost of treatment be?
• Then comes deep concern: how long will I have to be in the hospital?
• How long will I have to be off work?
![Page 7: The Need and Evolution of Critical Illness Insurance.](https://reader038.fdocuments.us/reader038/viewer/2022110119/55646b2ad8b42a90338b5393/html5/thumbnails/7.jpg)
The financial impact...
• Dr. Barnard noticed, that along with the patient's physical health, their financial health also became critical, when diagnosed with Critical Illness
• Many had to retire early or take time of work for long periods, and survive on savings or a meagre pension.
• While the medical expenses increased, their ability to generate sufficient income deteriorated.
• They complained about one thing only— money, or rather the lack of it.
• Many had to sell their houses, and other assets to fund the treatment, while ignoring their businesses which eventually went bankrupt.
![Page 8: The Need and Evolution of Critical Illness Insurance.](https://reader038.fdocuments.us/reader038/viewer/2022110119/55646b2ad8b42a90338b5393/html5/thumbnails/8.jpg)
Was it an easy task?• No, Dr, Barnard's long search for
re-insurers and for an insurance company prepared to launch such a product was fraught with frustration, disappointment— and failure.
• After striving for three years he was able to launch, in 1983, the world’s first critical illness policy.
• This covered only four conditions: heart attack, stroke, cancer and coronary bypass surgery.
![Page 9: The Need and Evolution of Critical Illness Insurance.](https://reader038.fdocuments.us/reader038/viewer/2022110119/55646b2ad8b42a90338b5393/html5/thumbnails/9.jpg)
The Evolution...• Initially, there were many doubts and much criticism.
• There were no proper statistics, the premiums would be too high, and the definitions would not pay out.
• But, as insurance companies came to understand the product better, the critical illness insurance became better now covers a wide range of serious ailments, with proper definitions paying out on all valid claims.
![Page 10: The Need and Evolution of Critical Illness Insurance.](https://reader038.fdocuments.us/reader038/viewer/2022110119/55646b2ad8b42a90338b5393/html5/thumbnails/10.jpg)
Critical Illness Insurance in Dubai
• In Dubai - UAE, the following companies offer a well defined Critical illness cover, at affordable premiums;
• Zurich International Life,
• Friends Provident International,
• Metlife ALICO,
• Royal London 360,
• Salama and
• Noor Takaful,
• Some plans cover upto 36 Serious Illnesses
• The scope and limitations of cover are clearly defined in the terms and conditions of respective plans
• All valid claims are paid out, without any hassle.
![Page 11: The Need and Evolution of Critical Illness Insurance.](https://reader038.fdocuments.us/reader038/viewer/2022110119/55646b2ad8b42a90338b5393/html5/thumbnails/11.jpg)
To know more..please visit
http://financialplanningindubai.com/critical-illness-insurance-in-dubai/