Jannie Venter, a managing executive at ABSA Life, said it is important to get sound financial advice and study the contract before acquiring insurance cover.
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“In the event of certain critical illnesses such as cancer, heart attack or stroke, a beneficiary is paid out a lump sum. The need for this product [dread disease insurance] is on the increase, particularly with people living longer, it increases the chance of suffering from one of these critical illnesses,” noted Venter.
Paul Roelofse, a financial planner said that sound financial advice is vital when a person is taking policies such as dread disease insurance as inadequate knowledge can lead to financial loss.
“A sound financial plan will make provisions for any life changing event. When one contracts a dreaded disease, a financial plan should be able to cover for such severe illnesses,” said Roelofse, who is also a consumer advocate at the Financial Planning Institute.
“There are four main types of dreaded diseases that are covered by this type of insurance. These are heart attack, stroke, cancer and coronary artery bypass surgery,” he added.
It is important for beneficiaries to carefully study different products available on the market as the pay-out when one has been diagnosed with a critical illness differs with insurance cover.
“There are difference options available in the marketplace. Certain products pay 100 per cent while, others pay depending on the severity of the situation, it all depends on what one affords,” remarked Venter.
It is critical for a person to make a financial assessment with regards to the impact it will make on one’s financial standing.
One should also consider other expectations that comes with dread disease insurance such as lifestyle changes and changes to one’s house or motor vehicle.
BY: TRUST MATSILELE