The Complexity Of Critical Illness Cover May Give Rise To Different Aspects

Category: Finance, Insurance.

The complexity of critical illness cover may give rise to different aspects.

The buy back option may become useful if used under a prepayment critical illness policy. One aspect may be the reinstatement of life cover( buy back option) . This could help the insured person accumulate enough funds for a death benefit gradually after a critical illness claim is made. But this may depend upon the agreement made by the insurer and the insured. For example, after prepayment due to critical illness the remaining life sum still existent could be reinstated by around 25 percent after two years of survival. If longer years of survival happen, the sum could be further increased.

The premium values may depend mostly upon the age of the person buying the reinstated life cover. Another advantage of the buy back option is that it can look like a surplus on top of the original policy bought. The raise in value of the premium can be around 10 percent as per the length agreed for the survival period. Thus the buy back option may not be fully used. The added expenses may not be very high as most persons suffering from a critical illness cover may not live before the end of the survival period. Moreover, yet another aspect of the critical illness cover is the child and juvenile cover. The child and juvenile critical illness cover may be offered automatically or as an extra.

The child and juvenile cover may be directly included in the parents critical illness cover. However, the automatic cover requires that the parents pay separate premiums for the child cover even if they do not have any. The diseases covered for juvenile critical illness cover may differ from that in the adult s critical illness policy. Another option may also stipulate that an additional premium be paid for each child included in the cover. Other than marketing procedures, essential factors of a critical illness product may be determined by medical and technical conditions. The critical illness definition must be clear enough so that a critical illness claim may be reviewed and accepted. Medical considerations as well as underwriting may unveil three important conditions for the cover of critical illness.

The critical illness conditions covered must be well priced judged on accurate statistical data. The first condition mentioned above can be confirmed by consulting medical experts. The critical illness product must be well product against the risk of antiselection. The dilemma that may be often encountered as good critical illness definitions will be shown below based on the example of heart attack( myocardial infarction) . The diagnosis for this will be evidenced by all of the following criteria: a) a history of typical chest pain. b) new electrocardiogram changes. c) elevation of infarction- specific enzymes. "Non- ST segment elevation myocardial infarction( NSTEMI) with elevation of troponin I or T is excluded. " By measuring the rise of troponin the malfunction or death of even 1 gram of heart muscle could be known. The definition recommended by Munich Re may be as follows: "The death of a portion of the heart muscle as a result of inadequate blood supply to the relevant area" .

This may not result in the patient being handicapped but nonetheless could be referred to as myocardial infarction. Part 3 of this article will further discuss about the various aspects of critical illness cover including more details about the definition of myocardial infarction by Munich Re.

Read more...

Motorists Were Also Advised Against Lying To Insurance Providers When Applying For Cover Or Looking To Make A Claim - Finance and Insurance Articles:

Drivers could be spending a record amount of money from their car loan on motor insurance, a new set of figures have indicated.

This Is Something That New Home Buyers Need To Be Aware Of - Terry Pett's Finance and Insurance blog:

For some people finding home owners insurance can become quite a headache.

Having Not An Inappropriate Underwriting Can Lead Your Insurance Application To Get Rejected - Finance and Insurance:

Tremendous improvement in communication methods like telecommunication and Internet, and economic liberalisation in countries all over the world have given rise to insurance sector, too.