Wondering if taking out a life insurance policy will give you cover if you develop a dreaded disease? Read on and we’ll fill you in on what you need to know.
First up, let’s talk about what a dread disease cover – also known as critical illness cover – actually is, in terms of insurance. When you take out this type of cover, it offers financial protection against critical illnesses such as heart attack, cancer, stroke, Alzheimer’s and Parkinson’s. It also typically covers severe injuries that might result from an accident, such as brain damage or paraplegia.
How Is Dread Disease Cover Paid Out?
When you submit a dread disease claim, your insurer usually pays out a lump sum that can be used to help you with medical expenses as well as the lifestyle changes you might have to make.
Dread disease cover usually has tiered benefits with the medical event determining the proportions of your cover which you can claim. Thus, the disease or illness you’re diagnosed with will determine your pay-out.
As an example, if your benefit classifies a kidney transplant as justifying a 25% pay-out of your critical illness benefit and you have a benefit of R1 Million, you will receive R250 000. Your benefit will continue and would protect you in the face of other dread diseases, but wouldn’t be able to pay for the same event – a kidney transplant – again.
Is Dread Disease Cover Included In Life Insurance?
Life insurance is a stand-alone product that doesn’t cover dread disease. Dread disease cover is a complete benefit on its own and, unless your insurer has an all-in-one type of cover that includes it, it’s typically a separate type of cover you’d have to get in addition to your life insurance.
How Is Dread Disease Cover Handled At MiWayLife?
At present, MiWayLife doesn’t offer dread disease cover as a stand-alone product – but watch this space. However, we do have an affordable 4-in-1 policy that includes a terminal illness benefit. This is an added benefit that’s built into your life cover. It pays out if you are diagnosed with a dread disease that will result in a poor prognosis together with a life expectancy of less than 12 months after diagnosis. This benefit is accelerated, meaning that you have the option to immediately claim 50% of 100% of your life cover amount.
Naturally, nobody likes to think about a scenario in which their health might take a turn for the worse, but life is unpredictable. This is why, with life insurance cover, you can rest assured that your family have a financial safety net to protect them – whatever may come.
