The Need and History of Critical Illness

Insurance by www.financialplanningindubai.com

Way back in 1983....Apple designed the Iphone Prototype, but there was another significant creation, which has changed the

world we live in..Image Source : http://www.businessinsider.com/the-original-iphone-2011-12

Dr. Marius Barnard

Designed and launched Critical Illness Insurance

in 1983

About Dr. Barnard• Marius Barnard, a South African cardiac surgeon and inventor of critical

illness insurance was born in 1927.

• Dr. Barnard, with a team of surgeons headed by his brother Dr. Christiaan Barnard performed the world's first human-to-human heart transplantation in 1967

• He had witnessed the financial hardship his patients went through, during and after the treatment of a Critical Illness, and approached various insurance companies to design a new product to protect people from financial hardships, when diagnosed with a Critical Illness.

• His argument was that "as a medical doctor, he can repair a man physically, but only insurers can repair a patient's finances".

• Thanks to his efforts, on 6th October 1983, the first Dreaded Disease Insurance was launched in South Africa.

What Prompted him to Create this Cover?• Medical Research confirms that

at least 70 percent of us will one day be told by our doctor that "You have had a heart attack, a stroke or perhaps cancer".

• The good news is that most of us will survive, as a result of highly skilled physicians, modern medical equipment, procedures and facilities, but at a cost.

• One-third of the cost is direct medical and the rest indirect, in the form of early retirement, home nursing, building alterations etc.

Questions, following the shock!!!

Whenever he broke the news to any of his patients about their critical medical condition, after the initial shock, the following questions usually followed;

• Can I be treated?

• Will I be cured?

• What will the cost of treatment be?

• Then comes deep concern: how long will I have to be in the hospital?

• How long will I have to be off work?

The financial impact...

• Dr. Barnard noticed, that along with the patient's physical health, their financial health also became critical, when diagnosed with Critical Illness

• Many had to retire early or take time of work for long periods, and survive on savings or a meagre pension.

• While the medical expenses increased, their ability to generate sufficient income deteriorated.

• They complained about one thing only— money, or rather the lack of it.

• Many had to sell their houses, and other assets to fund the treatment, while ignoring their businesses which eventually went bankrupt.

Was it an easy task?• No, Dr, Barnard's long search for

re-insurers and for an insurance company prepared to launch such a product was fraught with frustration, disappointment— and failure.

• After striving for three years he was able to launch, in 1983, the world’s first critical illness policy.

• This covered only four conditions: heart attack, stroke, cancer and coronary bypass surgery.

The Evolution...• Initially, there were many doubts and much criticism.

• There were no proper statistics, the premiums would be too high, and the definitions would not pay out.

• But, as insurance companies came to understand the product better, the critical illness insurance became better now covers a wide range of serious ailments, with proper definitions paying out on all valid claims.

Critical Illness Insurance in Dubai

• In Dubai - UAE, the following companies offer a well defined Critical illness cover, at affordable premiums;

• Zurich International Life,

• Friends Provident International,

• Metlife ALICO,

• Royal London 360,

• Salama and

• Noor Takaful,

• Some plans cover upto 36 Serious Illnesses

• The scope and limitations of cover are clearly defined in the terms and conditions of respective plans

• All valid claims are paid out, without any hassle.

To know more..please visit

http://financialplanningindubai.com/critical-illness-insurance-in-dubai/