CII pays the insured a predetermined amount of cash, immediately after a diagnosis of illnesses defined in the policy; e.g. heart attack, transplant, stroke or, cancer.
Policies can be sold on an individual basis in amounts as high as $500,000, subject to underwriting
The vast majority of policies are sold on a guaranteed issue basis (albeit lower amounts; $25-$50K), through employer group plans; contributory or 100% voluntary.
The popularity of CII is growing for many reasons:
- traditional health plans have ever higher deductibles and out of pocket expenses
- group CII plans are very affordable
- up-front cash from a CII plan can be used for just about anything; e.g., lost income, home nursing, even experimental or out of network treatments not covered by the underlying medical plan.
Since “Dread Disease” insurance was conceived in South Africa in 1983 (hint), advancements in medicine have increased the likelihood of survival from a critical illness, while also extending life expectancy. All at a cost.
OK, Alex. I got it.
Who was Dr. Marius Barnard?
With his brother Dr. Christiaan Barnard, they performed the first heart transplant, witnessing firsthand their ability to heal patients physically but not financially!
