Life Insurance Archives

When most of us think about life cover, we don’t necessarily think about the two additional benefits we can bolt onto our policy (disability and critical illness cover). The reason why we often neglect these other risk options is because we either don’t understand what they cover, or we’re simply naïve in our thinking that “our medical aid has that all sorted out”. Put your hands up if you belong to a medical aid? If you do, count yourself lucky. It’s estimated that only 17 out of every 100 people in South Africa belong to a Medical Scheme. The thing is that even the 17% of us, who are fortunate enough to be able to afford private healthcare, understand that our plans don’t cover everything. In fact, if you’ve been a member of a medical aid for a while, it’s fair to say that at some point or another a few of your bills have come back unpaid or not paid in full. In cases where you may not be overly thrilled about having to cough up a few hundred Rand here and there (hopefully not thousands), what would you be thinking and feeling if you got really sick and landed up in hospital for an extended period of time with a life threatening illness like Cancer? Are you 100% sure your medical aid is going to pick up all the bills if you become seriously ill? The truthful answer to this question is, “I don’t really know!” Have you ever taken the time to investigate the Cancer benefits and thresholds on your medical aid plan? Are you covered for R100 000 per annum or R1 000 000 per annum? How much is enough? Being diagnosed with Cancer could end up costing hundreds of thousands of Rand in treatment costs over an extended period of time. Let’s assume for a second that your medical aid only covers a portion, but not all the costs associated with your illness. Do you have enough saved money lying around to pick up these unforeseen expenses? When you take out critical illness cover with a life insurer, the product is designed to pay out a lumpsum of money on the diagnosis of a severe illness. The more comprehensive the product, the more illnesses it covers in the policy definitions. The truth is 90% of all critical illness claims are paid out on the back of the 3 biggies: • Cancer • Stroke • Heart Attack At the very least, you want to make sure that you’ve got these covered. Something else you need to consider is the percentage pay-out on diagnosis. Most people assume that if they have R1 000 000 critical illness cover and they have a minor heart attack, the insurer will pay out the full R1 000 000. This unfortunately isn’t the case. Claims are assessed on a severity basis and paid out accordingly. Your minor heart attack might only get you a 10% pay-out of your R1000 000 which is R100 000. If you can afford it, try and opt for the “max” type products available on the market. That means you are paying a little extra, but if you are diagnosed with one of the “biggies” your insurer will pay out a max pay out (100% of your insured amount). When it comes to insurance, you get what you pay for. If you are going to consider taking out critical illness cover, then make sure you look at the more comprehensive offerings in the market. Nobody plans to get ill, but if it does happen to you, you will be happy in the knowledge that you have enough insurance cover to pay the bills and to get the best medical treatment possible. Until next time. The Moneyshop Team

Do I Need Critical Illness Cover If I Belong To A Medical Aid?

by MoneyShop July 11, 2019

When most of us think about life cover, we don’t necessarily think about the two additional benefits we can bolt onto our policy (disability and critical illness cover)....

Critical illness cover, Insurance, Life Insurance

Can I transfer my group life cover if I leave my company?

by MoneyShop June 21, 2019

You’ve had enough. Enough of the daily commute, the office politics, and you’re frustrated that you still haven’t ‘cracked the nod’ for the corner office. It’s time for...

Insurance, Life Insurance

Why life insurance could be the best gift to your loved ones

by Darren April 26, 2019

There are many ways to show your loved ones you care about them. But who knew that life insurance could be one way of doing this? Purchasing life...

Insurance, Life Insurance

Get life insurance for every stage of your life

by Darren April 18, 2019

Our lives are not static. People grow up, they get married, have children, and retire. So as your life changes, so should your life insurance. Shreekanth Sing, technical...

Insurance, Life Insurance

Should you cede your life insurance?

by Ilke April 8, 2019

Life insurance guarantees that you are protected in the event that causes income loss. This is the reason you need to think carefully before you cede it to...

Insurance, Life Insurance

Is an HIV test required for life insurance?

by Athenkosi Sawutana March 29, 2019

HIV/Aids is treated like any chronic desease nowadays. But does this mean you're no longer required to test before purchasing life insurance? Moneyshop finds out. Previously insurers have...

Insurance, Life Insurance

Could an incontestability clause become applicable in South Africa?

by Athenkosi Sawutana March 5, 2019

The incontestability clause is not legal in South Africa, but wouldn't it be better if it was introduced? Sometimes consumers lose out on their life insurance claims, either...

Insurance, Life Insurance

Does life cover exclude certain illnesses?

by Athenkosi Sawutana February 4, 2019

One of the reasons people purchase life cover is to ensure that they are covered when they are ill and cannot work. When you purchase life insurance, your...

Insurance, Life Insurance

Is life cover necessary when you have group risk cover?

by Athenkosi Sawutana January 25, 2019

Group cover provides financial protection in the event of injury and death , but is it it enough on its own? Many consumers believe that being insured under...

Group Cover, Insurance, Life Insurance

Should you borrow from your life insurance?

by Athenkosi Sawutana December 13, 2018

While life insurance is designed to provide financial assistance in the event of death, it can also come in handy when you are facing an emergency. You have...

Borrow, Life Insurance