4 Mistakes to avoid with serious illness cover
Serious illness cover is a long-term insurance policy designed to take care of you financially by paying out a cash lump sum in the event that you are diagnosed with a specific serious illness. Here are four mistakes to avoid if you’re considering this type of cover.
1. Thinking you don’t need it
The rising cost of healthcare means that cancer treatment and heart surgery can often rack up bills in the hundreds of thousands. And while medical aid is vital, it’s often not enough to cover the full cost of a serious illness, leaving you to negotiate the shortfall. Not to mention additional expenses like professional homecare or travel costs in the event that you need to see a specialist. Not only can serious illness cover take care of these expenses, it can also help to cover your monthly expenses if you're unable to work as a result of your illness, ensuring that your family's standard of living remains unaffected.
2. Waiting too long
You may feel bulletproof in your twenties and thirties and decide to delay the decision to take out serious illness cover, but the fact is that life is unpredictable and serious illnesses can strike at any age. What’s more, once you’ve been diagnosed with a serious illness such as cancer, it will most likely be listed as an exclusion on your policy should you decide to take out cover down the line. Getting covered early on means your premiums should remain at a similar rate, bar the usual annual increase, even if you’re diagnosed with a serious illness later in life.
3. Not taking out enough cover
While it’s no easy task trying to calculate the amount of cover you might need should you ever be diagnosed with a serious illness, it’s worth investigating the associated costs and thinking about what you’d need to cover in the event you were unable to work for a period of time – fixed monthly costs like your mortgage, car repayments and school fees as well as day-to-day living expenses. Then, find out how much cover you’d qualify for and consider taking out the maximum you can afford to ensure that you and your family’s needs are met should you be diagnosed with a serious illness. Serious Illness Cover from Standard Bank’s direct life insurance services offers R1 million cover from as little as R190 per month, making it an affordable way to protect your family.
4. Not being completely honest
Honesty is always the best policy. And here’s why it may be even more so when it comes to serious illness cover (and any other type of life insurance): If you ever reach the claim stage, your insurer will attempt to substantiate the information you’ve provided in your application. If they find out that you’ve lied or left out relevant information, they are within their rights to reject the claim and refuse to pay the benefit, or cancel your policy. And here’s something else you may not know: Lying or withholding information could affect a claim, even if the reason for the claim is unrelated. So, be completely transparent in your application and don’t exclude any information, even if you think it’s irrelevant to the cover you’re applying for.
Are you covered?
Serious Illness Cover from Standard Bank’s direct life insurance services pays out in the event that you suffer a stroke, have a heart attack, are diagnosed with cancer or require open heart surgery. And because taking out cover is an important financial decision, it makes sense to choose the bank trusted by millions of South Africans for over 150 years. Get a quote today or ask a customer service agent to call you back.
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