Critical/ Severe Illness or Dread Disease Cover policies:
Critical Illness cover is a Lifestyle protector or cover product that pays out in the event that the policyholder is diagnosed with a serious and often persistent illness. It is usually offered as an additional benefit on a life insurance policy catering for the risk of illness, but can be taken out as a standalone policy. The types of disease covered by the policy are usually listed and limited by the insurance company. (That is, they only cover certain types of disease). The payout for a dread disease insurance policy is usually equal to that of the life insurance payout, but differs between Insurer Companies. One of the companies that stand out in terms of this type of policy is Old Mutual, who, if the sickness falls under the listed conditions in the policy always pay out a 100% of the cover no matter what the grade of severity.
What does Severe Illness Cover cover?
Dread disease covers a range of illnesses including cancer, stroke, heart attack, coronary artery bypass and others, depending on the insurance company. The payout of this cover serves to protect your lifestyle, whether you work or not, thus your everyday expenses are covered before the illness occurred as well any other additional medical expenses due to the illness.