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Posted on April 16, 2008 by Mike Armstrong | Posted under Insurance
The Evolution Of Critical Illness Cover In The Canadian Market
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Firstly, similar to that of UK, at an initial stage in Canada, the critical illness definitions might not have been fixed. Therefore, the actual critical illness definitions may have varied from one insurer to the other. High competition in the market may have pushed insurers towards increasing their benefits and simplifying or lessening their definitions. But this may mean trouble at the moment a critical illness claim is made. Thus when analysing the critical illness claim, the claims department may encounter problems understanding the definitions clearly. At this moment the claim could be rejected and hence lead to customer disapproval as from their point of view the critical illness policy had been completely in rule. Moreover, the group market in Canada may be rising. This segment of the Canadian insurance market is believed to make progress in the coming years. The importance of critical illness cover in Canada is turning out to be higher. The reasons may be Canada's ageing population and expensive healthcare costs. Additionally, at the beginning, critical illness insurance may have been introduced as a standalone cover. Gradually, it became the rider of disability and life insurance. At present, insurers may be finding new alternatives to enhance the design of critical illness cover and at the same time to make it more effective. As a result, insurers may be trying to accelerate the benefits of a life insurance upon diagnosis of a critical illness. On the other hand, other insurers may be diminishing the benefits from critical illness covers that have guaranteed premiums. However, there may be certain facets to remember about critical illness insurance in Canada as compared to more ripened markets such as UK and South Africa. First of all, the premium rates for individual critical illness products in Canada may be guaranteed throughout the whole policy. As a matter of fact, the policy may be non cancelable. This may then stand as a solid advantage for the insured. But from a reinsurer's point of view this type of critical illness policy might become expensive as high levels of premiums might have to be paid. Furthermore, banks may have started to enter the market thus offering creditor critical illness. For example on mortgage, loans and credit cards. Banks believe that creditor critical illness may become a high source of income for them. Additionally, more than 40 percent of critical illness policies still ongoing may have been taken out during the year 1999. This increase is expected to continue as more companies, banks and insurers may be starting to enter the insurance market. Also, the awareness of critical illness among people may have started to broaden. So, critical illness cover in Canada may reach a peak but time may be the prime factor. People may have started to discover the various advantages offered by critical illness cover. Thus it remains to be seen how successful critical illness cover in Canada turns out to be. About The Author: For more information about Life Insurance Cover and Critical Illness Insurance please visit www.unbeatablelifeandcriticalinsurance.co.uk. |
Tags: LIFE INSURANCE COVER, CRITICAL ILLNESS INSURANCE, MORTGAGE PAYMENT PROTECTION, INCOME PROTECTION INSURANCE
