Critical Illness insurance has an interesting history in that it was started by a doctor, Dr. Marius Barnard. Dr. Barnard was a South African cardiac surgeon and was a member of the medical team (headed by his brother Christiaan Barnard) that performed the world’s first human-to-human heart transplant back in 1967. While practicing medicine he saw that when a patient survived an illness and surgery, often the financial stress of the recovery is what eventually killed them.
Because he saw this so often in his patients, he went to the insurance companies in South Africa and convinced them to create an insurance product that would work similar to a life insurance product. When someone was diagnosed with a critical illness, the policy would pay a lump sum to the insured. The first critical illness policy was sold in South Africa in 1983. Critical illness policies are now sold in 60 countries around the world!
One reason that critical illness policies have become popular is because now when someone is diagnosed with a critical illness (such as cancer, major heart conditions, stroke, etc.) they are likely to survive. Thanks to modern medicine, what people didn’t survive just a few decades ago is now treatable and survivable. People are more likely to survive the treatments and surgical procedures. However, recovery can be months, causing the patient to experience medical expenses during a time they are unable to work. Medical expenses have increased to the point that even with a major medical policy picking up a large portion of the expenses, there are remaining expenses and when coupled with loss of income, can be devastating. Stress can hinder recovery and lead to other medical conditions.
Because people are more likely to survive a medical emergency (such as heart attack) and more likely to survive a critical illness, planning for the unexpected with a critical illness policy as part of your medical insurance is a good idea. Critical illness policies cover a wide range of critical illnesses. To find out what types of illnesses are covered, contact me for more information. Critical illness policies weren’t developed because you may die from the condition, but because you are going to survive it.
This update has been provided by Fresh Finance.