Employers can take out a critical illness cover to help strengthen the financial security of their employees. Thousands of workers find themselves unable to perform their duties at work due to critical illnesses. Critical illness insurance is a policy that covers serious illnesses as listed in the policy agreement. The cover pays out a lump sum to help policy holders meet costs such as debts, mortgage payments or cost of alterations that need to be made in the recovery period.
What does the policy cover?
Critical illness insurance will provide a one-off payment if you get one of the illnesses listed in the policy. It is important to note that policies differ and not all conditions can be covered. Some of the illnesses that can be covered include:
• Heart attack
• Specific types of cancers
There are policies that will also cover permanent disabilities which occur as a result of injury or illness. Most covers will only make a once-off payment and this marks the end of the policy. However, you can find insurers who will make smaller payments for less serious conditions or in the event that your child gets one of the conditions specified in the cover. The policy will not cover for health problems that you had prior to taking out the cover.
When should you consider critical illness cover?
A critical illness cover should be taken out when:
• You do not have savings to cater for serious illnesses or disabilities
• You are the bread winner and your family would be unable to cater for daily expenses in the event that you become critically ill.
Benefits of critical illness cover
• Critical illness pays a lump sum and the policy holder is at liberty to decide what to do with the money.
• It can help offset shortfalls on your health insurance cover.
• It can help cater for non medical expenses such as bills, mortgage payments and groceries till you get back on your feet.
• Medical aid may not allow you to have the best medical attention. A critical illness cover allows you access to the best medical care.