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While Critical Illness Insurance is new to the United States, it has an
established track record in South Africa, United Kingdom, Japan, Australia,
and Canada.
Because of its broad appeal, Critical Illness Insurance
is very successful wherever it has been introduced:
In 1987 Critical Illness plans were successfully launched
in England. Today, more than 70 U.K. insurance companies sell a Critical
Illness policies. Total Critical Illness business was over $32 billion
in 1995!
In 1990, Critical Illness was introduced in Australia.
31 out of 33 Australian life insurance companies now offer a Critical Illness
policy.
In Japan, a Critical Illness policy that only covered
heart attack, stroke, and cancer was recently introduced and over 500,000
policies were sold in just 10 months. Before the end of its fourth year
in Japan, there were over 6 million policies sold!
Due to the size of the United States (i.e., seven times more
people than the U.K.) and the medical technology here, the market potential
for Critical Illness insurance in the United States is enormous. Critical Illness should reach
$70 billion in sales in about three years. Critical Illness coverage is offered in several forms, including
with universal life, and on a stand-alone basis (without a death benefit).
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