Critical illness insurance

Abstract

Critical illness insurance is a form of the life insurance that pays out a lump sum on diagnosis of a critical illness that meets the insurer's strict policy definition. However, it only covers critical illnesses that are well defined in the policy. Most critical illnesses are covered given that there exists no globally accepted definition of what a “critical” illness is or entails. critical illness insurances is actually reporting the highest number of policies in force since the year 2014. Section 2 is on Product fit. We discuss how Critical illness fits in our current insurance products; Major medical plans, Disability insurance, Cancer insurance, Life insurance, Long-term care and Annuities. In section 3, We compare mortality rates for Ozkok et al, CMI 23 and The Human Mortality Database(THMD) life tables. We observe the similarities and differences. In section 4, we discuss the incidence rates for heart attack for Ozkok et al and explain why they decreases after age 68/69. In section 5, we calculate premium rates based on the graduations from Ozkok et al for all- causes(1999-2005) and compare with rates for all-causes(2007-2010) In section 6, we perform parametric bootstrapping and simulate coefficients. We use the XLSTAT. In section 7, we explain the effects of screening for breast cancer for women aged 50-71 on the premium rates. Section 8 and 9 are references and appendices. The presentation is majorly on graphs and tables from excel.