Critical Illness Cover – The evolution of critical illness cover

First introduced in 1983 by a South African cardiac surgeon named Dr.

Marcus Bernard,

critical illness cover has developed greatly over the years and continues

to grow in demand.

Despite the benefits offered by the National Health Service, the

financial burden for those who fall ill is often overwhelming.

When dealing with a critical illness you may loose more than your

health, including your home and job.

Cover for all eventualities has therefore become essential for

most.

The critical illness policies first introduced in the UK in the 90’s

were incredibly simple when compared to those today.

The core illnesses, which were set as cancer, heart attack and stroke, still remain today and additions to

this, new ones were added; including major organ transplant

and kidney failure.

Total and permanent disability was then later added to include a range

of illnesses that could severely change the insured’s lifestyle.

Over the years the number of illnesses has broadened rapidly due

to medical advances.

In 1971 only 52% or woman diagnosed with Breast cancer would survive, this has now risen to 81%.

An increasingly saturated market has also meant that each company offers a slightly different policy in order to make themselves unique.

This has helped to attract increasing amounts of customers, and the

popularity of critical illness cover is steadily growing.

However in recent years there has been little development on the

illnesses offered, with this in mind PruProtect have attempted to

create a more up to date form of critical illness cover.

Today, critical illness polices generally take two different forms.

Customers can select a basic policy which covers between 6 and 10

illnesses or a comprehensive cover which covered up to 30 illnesses.

However this has been further developed by PruProtect who now offer up to 154 illness under their

Serious Illness cover.

In 1994 a standardized list of definitions for critical illness cover

was published for all the core illnesses.

The argument of severity has often caused problems for those whose claims have been declined as their

illness was not far enough progressed.

Again PruProtect has developed the concept of severity further, by

paying out on diagnosis rather than when the illness becomes critical.

The benefits paid are based on how far developed the illness is, meaning

any benefit not paid out originally will remain until later required.

Today most insurance providers include seven major diseases in their

policy criteria and any more than this considered additional benefits

of the policy.

However often these companies take an all or nothing approach and have little consideration of the full

impact of a critical illness on a customer’s lifestyle.

In the current market, PruProtect offer by far the most advanced serious illness policy and also acknowledge the fact that all

illnesses of differing severity have an impact on the customers lifestyle.

Critical Illness Cover – The evolution of critical illness cover