A GUIDE TO CRITICAL ILLNESS INSURANCE
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Critical illness insurance: what is it?
Critical illness insurance is a type of insurance that pays you a lump sum if you are later
diagnosed with a life-altering illness like cancer, heart attack, stroke, multiple sclerosis or
Parkinson's disease.
This type of insurance is intended to help you as you go through major health issues that
are covered by your policy. Money paid out can be used to pay for costs not covered by
other forms of insurance. It can also be used for personal expenses related to the illness
or not.
A little bit of history
Critical illness insurance originated in South Africa in 1983 with a cardiac surgeon named
Dr. Marius Barnard who often saw his patients deal with not only a life-altering diagnosis,
but also the financial impacts that resulted from their conditions. Having witnessed these
hardships, he convinced insurance companies to introduce a new type of insurance
related to critical illnesses.
Since then, critical illness coverage has been introduced in many countries with and
without universal healthcare, as a way to bridge the gap between disability insurance and
life insurance coverage.
GETTING STARTED
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