Understand your dread disease cover

Clearing up misconceptions about dread disease cover

Posted  April 17, 2013

While the words 'dread disease' are enough to strike fear into the heart of most of us, it is important to be practical about planning for the day that we fall seriously ill. Many people, however, are confused about dread disease cover and what benefits it would provide if you were to ever have a heart attack or a stroke. Let us take a closer look at this type of insurance.

A dread disease cover policy will provide a pay-out according to your policy schedule, which clearly defines not only the conditions and illnesses covered but also how much, or what percentage of your cover will be paid out for each.

It is important to remember that a dread disease cover policy is not a medical aid nor hospital plan and neither is it an income replacement product. Your dread disease cover pay-out will be paid to you as a lump sum in the event of a successful claim. These funds can be used as and when you see fit, although your pay-out is intended to:

  • Cover any medical or related costs not paid by your medical aid, for example travel to another city to receive treatment or the cost of rehabilitation therapy
  • Pay for any so-called ‘lifestyle changes,’ for example renovations to make your home wheelchair friendly
  • Pay your basic expenses while you are convalescing or cover any additional expenses, for example child care

In a nutshell your dread disease cover pay-out will provide the funds you need to get your life back on track after a serious illness and ensure, as far as possible, that you are not left with a mountain of medical bills to pay-off. It is the financial breather you need as you adjust to your illness and the road ahead.

If you are thinking about buying dread disease cover then you also need to think about buying disability insurance as well, which will provide a pay-out if you are ever permanently disabled by illness or injury and unable to work.

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