Do You Need Critical Illness Cover in Dubai?

It’s a question we ask ourselves when our friends talk about it, when someone we know falls critically ill or when that guest at a dinner party is handing over their business card, saying we need it. To understand whether you require Critical Illness cover, let’s go over what it actually is, when it is used and some facts.

What is Critical Illness Cover?

Critical illness cover, known also as critical illness insurance, is a long-term insurance policy where you receive a lump sum if you’re diagnosed with an illness covered by your insurance policy. It is a safety barrier designed to pay off your mortgage, any debts or pay for changes in your lifestyle due to your new diagnoses – like wheelchair access or home assistance.

Critical Illness is not to be confused with Medical Insurance – which pays your medical bills at the hospital. Critical Insurance relates to paying your rent, mortgage, school fees etc.

What’s covered?

Each policy is different, however below is an example of the type of illness or injury included in most policies. The policy will also mention what level or stage the condition should be. A policy could also pay out for a disability gained through illness or injury. Once the payment has occurred the policy ends:

• Heart Attack
• Stroke
• Types or stages of Cancer
• Conditions such as Multiple Sclerosis
• Kidney Failure
• Organ Transplant
• Alzheimers Disease
• Blindness or Deafness
• Quadriplegia
• Loss of limbs
• Major burns

What’s not covered?

Policies can vary, however, examples of conditions not covered in most policies are:

• Some chronic or long-term illnesses might not be covered, like some cancers.
• Health conditions you knew about before the policy commenced.
• Death, which is why it is important to take out a combined life insurance policy.

Why is it important?

• State or Government benefits generally don’t provide enough to cover for critical illness.
• Living outside of your home country means you do not have access to basic facilities like a National Health Service or direct assistance from your family.
• A policy pay-out can pay off a mortgage, cover medical bills, home modifications or anything else related to your condition.
• If you do not have personal savings to cover you and your family during illness.
• If your employee benefit is basic and won’t provide enough to cover you and your family.

How likely are you to make a claim?

As the saying goes – bad news happens quickly – and to know if you will require Critical Illness cover or to make a claim is not something to speculate about. Instead here are some facts courtesy of Zurich Insurance Group from 2013. In this example I have used data for the Middle East unless stated:

About the conditions:

• Top 3 causes of illness: Cancer (42%), Heart Related (30%), Stroke (7%).
• Top 3 causes of death: Cancer (40%), Heart Related (38%), Road & Traffic Accident (9%)
• Globally – 1 in 3 people develops cancer in their lifetime.
• If we single out female data, cancer claims jump dramatically to 75% of all female claims.
• The most common cause of cancer deaths globally is lung cancer at 19%.

About the claims:

• 26 is the youngest age for critical illness claims.
• 30 is the youngest age for life insurance claims.
• 46 is the average age for critical illness claims.
• 51 is the average age for life insurance claims.