What is a Dread Disease?
They’re the eventualities that no-one wants to think about – the kind of diseases that lead to an expensive battle with it and or leave you with a lifetime of medical costs. Generally, there are four major conditions that come to mind, namely Heart Attack, Cancer, Stroke and Coronary Artery Bypass Graft (CABG)
What is Dread Disease Cover
Dread disease cover – also known as severe illness cover – is a long-term insurance policy, put in place to cover specific serious illnesses. A dread disease has a way of incapacitating sufferers for an extended period of time and the lump sum payments that you would receive could provide you with the additional funds to:
- Pay for additional medical expenses.
- Recover from a loss of income.
- Have money available while you recover and when you might, otherwise, not receive a regular income.
- Pay for Additional medical equipment and counselling needed.
- Ensure that you and your family will survive financially should you not recover sufficiently to return to work.
Ultimately how you spend the lump sum amount that you receive from the policy is your choice.
The four Phases of a Severe Illness
A severe illness typically has four phases. You get diagnosed in the first phase and treated in the second phase. Depending on your choice of medical aid, it could support you during the first two phases.
In the third phase you need to recover, both physically and emotionally. Then in the fourth phase you face the financial impact of the unexpected expenses that a severe illness can have on you, your family and your business. The lump sum received from a severe illness would support the person through the last two phases.
What Isn’t Covered?
Pre-existing health conditions would not be covered. In addition to this it is important to realise that not all medical conditions are covered by a dread disease policy and that the severity of the condition determines the amount of money that is paid out to the policy holder. This stresses the importance of understanding the terms of your dread disease policy so that you know how much money will pay out in the event of a debilitating illness.
How Much Does It Cost?
The insurance company would take into account a number of factors when they arrive at a monthly premium including the following:
- Age.
- Whether you smoke or have previously smoked.
- Health (your current health, your weight, your family medical history).
- Job (some occupations carry a higher risk than others and may mean that you have to pay more each month).
- The amount of cover that you take out.
Why Would You need The Cover?
Dread disease cover is essential in the case of self-employed individuals where you will be covered for the loss of income during the period that you need to recover from the disease. The lump sum that you receive can also be used to cover any other medical costs incurred during your diagnosis, treatment and recovery. It can also be used to keep your family financially stable in an economy where every cent counts.
The financial consequences of a critical illness can often be worse than those of death. You want to be certain that you have sufficient funding for the necessary lifestyle adjustments that you and your family will need to make.
Many people make the mistake of not considering a severe illness policy, either because they believe that it won’t happen to them or they believe that the insurers won’t pay out in the event of a serious illness. In reality, however, the purchase of dread disease cover can be a critical life investment decision which can offer you comfort during those very difficult times.
