14 Jun Nearly Half of Critical Illness Insurance Claims begin prior to Age 55
Just under half (47%) of new critical illness insurance claims in 2011 began prior to age 55 according to the 2012 Buyer & Claimant Study conducted by the American Association for Critical Illness Insurance (AACII) and General Re Life Corporation. This marks a significant increase in claims by younger policyholders compared to the prior year’s analysis.
The percentage of claims that occurred before age 45 grew compared to 2010. Some 13 percent of male policyholders and 12 percent of female policyholders who received benefits were younger than 45 according to the data from 10 leading critical illness insurers. “The increase in younger claimants is likely due to an increase in younger buyers of this relatively new form of insurance coverage,” explains Jesse Slome, executive director of the recently formed critical illness insurance trade group. “With higher health insurance deductibles and more restrictive plans, critical illness insurance is starting to gain traction among buyers in their 30s and 40s.”
The study found a pronounced year-to-year increase in the number of claims paid to policyholders between ages 35 and 44. Some 8 percent of new claims by men and 10 percent women occurred at these ages in 2011, versus four percent reported by the prior year’s study. The greatest decline in claims occurred after age 55.
The study revealed that cancer remains the leading cause for new individual claims accounting for 61 percent of new claims. Heart attacks accounted for 11 percent and stroke for 18 percent of new claims.
Researchers analyzed data for over 57,000 purchasers of individual critical illness insurance policies as well as claims reported by leading insurers for the time period January 1 to December 31, 2011. The American Association for Critical Illness Insurance is the national trade association providing information to consumers and insurance professionals. Free access to the organization’s online learning, marketing and sales center is offered to insurance and financial professionals. For further information, visit the Website: www.aacii.org/ or call (818) 597-3205.
American Association for Critical Illness Insurance study conducted by General Re Life Corporation, 2012