Critical illness insurance may sometimes surprise us with some cases, in this case, antiselection. For example, people already suffering from a critical illness may have applied for a critical illness policy without making their insurers aware of the disease. But precautions can be taken against such cases. In fact the policy documents may contain a section named as the waiting period. The waiting period may vary according to the critical illness conditions and can be between two to six months. Critical illness insurance may cover the person only after the waiting period had passed.
Moreover, if the critical illness insurance provides an additional benefit, there may be a survival period alongside the waiting period. Should a critical illness take place, the patient may have to wait for the end of the survival period before a payment is made. The survival period may only last two weeks. One month can be the maximum waiting time.
Furthermore, the highest age of entry at which a person can buy critical illness cover may be 55, the age of maturity being 65. This may vary from one market to another and can also depend upon the decision of a company. Companies may tend to insure less people having reached the age of maturity. The statistics about their critical illness claims may not be as reliable and also claim rates may not remain fixed from year to year.
Knowing the rate at which a critical illness occurs may be a difficult task. Some countries may not have reliable and accurate statistical data sources which can be used to determine the severity of a critical illness, for example among men. Figures may help to study which critical illness conditions affect men mostly, for example heart attack. Other results may also demonstrate people of different age groups that suffer a specific critical illness. Therefore, assuming the rate of antiselection may also be inaccurate. So, the risks to have antiselection amongst all the critical illness policies may still prevail. Additionally, some problems may have to be solved regarding critical illness cover. Rapid improvement in the medical and diagnostic science may also influence the rate at which a critical illness occurs.
A critical illness such as cancer for example may be detected much earlier especially with improved cancer research tactics. This may therefore lead to a higher incidence rate of cancer. Another example could be the cover of coronary artery surgery. Effective medical techniques and instruments have made it possible for the critical illness to be diagnosed more often than before. As a matter of fact, figures that are being registered about the rates of incidence may become outdated. Hence critical illness may have a big risk of change and may continue to do so down the years. Looking at the rating risks, companies tend to restrict premium guarantees to five years. Single premium might also be offered for only a short lapse of time.
For a company to provide critical illness cover, it may put forward factors such as policy conditions, pricing, age limits, etc. Nowadays, many insurance companies may be bringing new design to their products to compete effectively in the insurance market. Low premiums and high benefits is what sometimes you may come across but everything and every condition may tend to vary from one company to another in the insurance market.