Knowing The Rate At Which A Critical Illness Occurs May Be A Difficult Task

Category: Finance, Insurance.

Critical illness insurance may sometimes surprise us with some cases, antiselection, in this case. But precautions can be taken against such cases.

For example, people already suffering from a critical illness may have applied for a critical illness policy without making their insurers aware of the disease. In fact the policy documents may contain a section named as the waiting period. Critical illness insurance may cover the person only after the waiting period had passed. The waiting period may vary according to the critical illness conditions and can be between two to six months. Moreover, if the critical illness insurance provides an additional benefit, there may be a survival period alongside the waiting period. The survival period may only last two weeks. Should a critical illness take place, the patient may have to wait for the end of the survival period before a payment is made.

One month can be the maximum waiting time. Companies may tend to insure less people having reached the age of maturity. Furthermore, the highest age of entry at which a person can buy critical illness cover may be 55, the age of maturity being 6This may vary from one market to another and can also depend upon the decision of a company. The statistics about their critical illness claims may not be as reliable and also claim rates may not remain fixed from year to year. Some countries may not have reliable and accurate statistical data sources which can be used to determine the severity of a critical illness, for example among men. Knowing the rate at which a critical illness occurs may be a difficult task.

Figures may help to study which critical illness conditions affect men mostly, for example heart attack. Therefore, assuming the rate of antiselection may also be inaccurate. Other results may also demonstrate people of different age groups that suffer a specific critical illness. So, the risks to have antiselection amongst all the critical illness policies may still prevail. Rapid improvement in the medical and diagnostic science may also influence the rate at which a critical illness occurs. Additionally, some problems may have to be solved regarding critical illness cover. A critical illness such as cancer for example may be detected much earlier especially with improved cancer research tactics.

Another example could be the cover of coronary artery surgery. This may therefore lead to a higher incidence rate of cancer. Effective medical techniques and instruments have made it possible for the critical illness to be diagnosed more often than before. Hence critical illness may have a big risk of change and may continue to do so down the years. As a matter of fact, figures that are being registered about the rates of incidence may become outdated. Looking at the rating risks, companies tend to restrict premium guarantees to five years. For a company to provide critical illness cover, it may put forward factors such as policy conditions, age limits, pricing, etc.

Single premium might also be offered for only a short lapse of time. Nowadays, many insurance companies may be bringing new design to their products to compete effectively in the insurance market. Low premiums and high benefits is what sometimes you may come across but everything and every condition may tend to vary from one company to another in the insurance market.

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