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Posted on April 16, 2008 by Mike Armstrong | Posted under Insurance
Further details about the progress of critical illness cover in Canada
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Also, insurers may as well use the Return of Premium (ROP) benefits on critical illness cover as an aid to compete appropriately in the market. In Canada, many critical illness policies may have the ROP built in or even offered as a rider. Other insurers may also offer the ROP as a maturity benefit refunding the premiums paid in case there was no critical illness claim. Alternatively, other companies may have also added the ROP on lapse option in their policies. This option may allow the insured to stop the cover, for example, after ten years and then receive a return of nearly all the premiums contributed. Even that this option might seem to be an advantage, some people might argue that the company may be in fact encouraging people to terminate their critical illness cover prematurely. Moreover, the group market may have adopted a different tactic. Conversely to individual critical illness cover, they provided cover for less critical illnesses. They believed that fewer critical illness conditions implied fewer exclusions, which may be true at a certain extent. On the other hand, creditor critical illness insurance covered only three core critical illnesses: cancer, stroke and heart attack. As a result, the product may have been easily explained and presented to potential customers. Also, the underwriting procedure may have become simple as well as the risk of exclusions may have also decreased. Furthermore, insurers may have also started to take notice that critical illness cover may be a living benefit. Consequently, policyholders may find important that additional benefits be offered at the time of claim. Therefore, insurers may be considering to providing services on top of paying out successfully as critical illness claim. Therefore, these value added services may include as per Munich Re: independent physician/specialist evaluation; referral to the most appropriate specialist given the claimant's condition; coordination of treatment in the Canadian healthcare system and finally if the claimant chooses to be treated outside Canada, the insurer may help with travel arrangements, accommodation and payment guarantees. These services may then be managed by another company that is specialised in the medical field. It may be too early to have an idea about how future critical illness consumers may feel to get these services on top of critical illness benefits. In fact, the most promising development may have been the creditor critical illness insurance, especially critical illness with mortgage cover. Creditor insurance may have been brought in Canada in the year 1997. So, during the past couple of years encouraging evolution in this sector may have been noted. Thus by the end of the year 2000, creditor critical illness insurance may have reached a sum of around CanD 12 million in terms of premiums. This amount may have represented a 100 percent increase since 1997. So, as seen, critical illness cover in Canada may be eventually moving towards greater success. Only time may tell about the gap between the Canadian market and UK market. About The Author: For more information about Life Insurance and Critical Illness Insurance please visit www.unbeatablelifeandcriticalinsurance.co.uk. |
Tags: LIFE INSURANCE COVER, CRITICAL ILLNESS INSURANCE, MORTGAGE PAYMENT PROTECTION, INCOME PROTECTION INSURANCE
