On a global scale, the serious or critical insurance market is reported to remain on a rise!
Advancements in science and medicine makes it easier than ever for consumers to consider the possibility of having to live with cancer, heart disease or kidney failure during their lifetimes. By understanding more about common diseases, it appears that consumers are also wanting more insurance coverage to adequately address potential future medical emergencies.
Allied Market Research was able to release their 2021 findings that clearly stated that the serious illness insurance market generated $124.7 billion in revenue. It is projected that given the current market trends, the industry will see an increase of up to $354 billion by 2031. Market analysts were able to use the details of the conducted study to project these future numbers that ultimately show a CAGR growth of 11.4%. The actual numbers are only a projected look at the future market and are subject to change as well as fluctuations as a result of investors, stakeholders, consumer interest, and key market players.
What Drives Growth Of The Critical Illness Insurance Market?
Apart from having more knowledge about the existence of common diseases, according to the market analysis, many of the consumers seeking serious illness insurance do so as a result of pre-existing conditions. As such, many consumers are rightly concerned about their potential for developing a serious condition later down the line. Additionally, more widespread testing of common conditions makes it easier for consumers to assess their own risk for developing a serious illness.
Some consumers are compelled to purchase additional insurance coverage simply because they’re more informed about the advantages of having it. Many Insurance providers are seeking to expand their market reach through education programs, and by raising awareness of how this type of insurance benefits consumers, many are more open to committing to a long-term policy.
Another driving factor was identified— the rising cost of medical care. For those without proper medical insurance, the cost of dealing with serious illnesses skyrocketed and was simply crippling. Having insurance coverage that adequately addresses potentially serious conditions offers consumers a peace of mind and proper preparation for the future. It also eliminates the possibility of accruing debt that forces family members into deficit.
COVID-19 Driving Growth
The pandemic is also partly to thank for the rising interest in serious illness insurance coverage. Though some consumers are put off by the seemingly high premiums, many are willing to spend the additional money every month to remove the potential for burdening family members. As the number of infection rates and death rose worldwide, more and more consumers started to consider the “what ifs” associated with contracting the illness. This led to a widespread panic and many opting for additional insurance to cover the potential conditions.
Those that suffered and survived COVID-19 were also made aware that they’re more susceptible to developing other conditions down the line. For example, in COVID-19 patients, heart attacks and cancer were more prevalent due to their severely compromised immune systems. As such, the dependence on critical insurance coverage was driven in great part due to the pandemic. This global panic has led to worldwide insurance policy growth rates that are projected to continue even after the pandemic subsides.
Critical illness insurance coverage is also seen as a great way to supplement traditional medical insurance. Many consumers opt to have both as a way to gain a peace of mind and to take advantage of bundling options within their insurance provider.
Greater Flexibility In Insurance Coverage
Many insurance providers are using this increased interest in critical illness insurance coverage to also expand their offerings and the number of conditions adequately addressed by their existing policies. Aflac is a great example of a provider choosing to expand their offering to include mental illness under their critical insurance policy. This change was due in part to the number of mental health problems that many people have suffered as a result of the pandemic. What’s more, many employers are also opting to provide employees with a comprehensive critical illness insurance coverage to help protect the health and safety of all of their workers.
Is Critical Illness Insurance Actually Worth It?
This voluntary coverage type exists to help patients receive financial support when receiving a serious medical diagnosis. Many serious ailments as well as procedures are supposedly covered by these policies, but are subject to change based on the provider. According to Aungier Clinic, a study revealed that suffering a heart attack can set patients back at least $26,000 in medical bills. This staggering cost can cripple many families financially— this is where the right insurance helps!
Serious illness insurance policies offer patients cash benefits upon a negative diagnosis versus lining the pockets of medical practitioners. In some instances, the amount offered by the policy may exceed the out-of-pocket costs patients require, in which case they can further reduce their debt.
