Many people think that severe illness cover is an optional extra, but statistics tell us otherwise. 84% of South African women and 82% of men will suffer from cancer, a stroke, or a heart attack during the course of their lives, making it essential to take out a serious illness policy. Here are all the facts on this type of insurance.
A severe illness policy is a lump sum benefit that covers serious illnesses of most bodily systems. These would include heart attacks, cancer, strokes, urological disorders, and illnesses like Multiple Sclerosis (MS). Severe illness cover pays out on a sliding scale depending on the seriousness of the illness and how badly it affects your lifestyle.
For example, if you have a mild heart attack or cancer stage 2, the life company will pay out a lesser amount than if you have a severe heart attack or cancer stage 4. Though a mild heart attack may only take you out of action for a few weeks, your lifestyle may be affected in the long term, and serious illness cover will compensate you for this.
Serious illness cover vs disability cover
Sometimes clients ask me why they should take out serious illness cover when they have disability cover already. The reason is simple – a serious illness may not prevent you from working long enough to claim disability. You could be suffering from stage 1 cancer and be back at work in a few days, but you’ll still be able to claim from your serious illness cover for the impact the illness is having on your lifestyle.
The cost of serious illness
Most people will find their financial security threatened if they suffer a severe illness. There are a number of costs associated with a severe illness. These include absence from work during recovery, home care during periods of illness, lifestyle modifications like changes to your home, and early retirement if you are no longer healthy enough to work.
The severe illness will pay out an amount so you can make the relevant adjustments to your lifestyle, as most severe illnesses will impact your lifestyle.
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