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Initially, critical illness insurance was originally designed with the intention of providing financial assistance to someone who was suffering or been diagnosed with a condition deemed critical. It was noted by Dr Marius Barnard, when observing his brother doing open heart surgery, that the lives of such people were greatly affected by such serious conditions. Therefore, in October 1983 in South Africa he founded the first critical illness product then known as dread disease insurance. At this point in time it covered just the four main critical conditions; heart attack, cancer, stroke and coronary artery by-pass surgery. However, as it is today, BUPA critical illness insurance and Royal Liver critical illness insurance would pay out a tax-free lump sum to the person insured upon diagnosis of one of the specified serious illnesses/conditions. This gave the financial support to that individual to be able to adjust to the probable changes in their lifestyle and the security that they will be able to financially manage whilst unable to earn a living.
Legal and General critical illness - Legal and General critical illness insurance - Legal and General critical illness cover
The occurrence of any one critical illness has probably not increased greatly over time but, as Dr Marius Barnard observed, there have been vast advances in medical technology and continue to be so. Due to improved life-prolonging treatment and operations etc the prevalence of critical illnesses has increased, such that the actual risk of someone contracting/suffering one of the conditions covered by Legal and General critical illness insurance today is quite significant.
In the United Kingdom 1 in 5 men and 1 in 6 women will experience a critical illness before normal retirement age and have a fair probability of surviving. For example, if someone was to suffer a heart attack and receive treatment within the hour at an accident and emergency department their chances of survival are greatly increased. It is estimated that about 70 percent of people with a heart attack that is dealt with swiftly will survive and have the possibility of returning to their normal lifestyle. Additionally, as with cancer, due to medical advances and increased awareness, early diagnosis means there is a greater probability of survival and the eventual return to a relatively normal lifestyle.
However, to suffer any serious illness has an impact on the individual and their family/dependents. Therefore, to have a critical illness plan in place will provide you with the peace of mind that should you experience a critical illness you will have the financial means by which to ease the pressures of everyday living and extra expenses that may come about.
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