Do You Really Need Critical Illness Cover if You Already Have Medical Aid?
You might think that having medical aid is enough, but let’s talk about critical illness cover and why it could still be essential for you.
What is Critical Illness Cover?
Critical illness cover, also known as severe illness or trauma cover, provides a tax-free lump sum if you’re diagnosed with a serious illness covered by your insurer. Thanks to medical advancements, more people are surviving critical illnesses, but recovery often comes with high costs.
Types of Benefits:
Non-Severity Based: You get 100% of the insured amount if your condition meets the insurer’s definition.
Severity Based: You receive a percentage of the insured amount, such as 25%, 50%, 75%, or 100%, based on the severity of your condition.
Why You Need It:
The purpose of this cover is to help you manage unpaid medical expenses and necessary lifestyle changes following a serious illness. Here’s how we recommend determining the amount of cover you need:
- Without Medical Aid: Enough to settle all household debt plus R2 000 000.
- With Medical Aid: Enough to settle all household debt plus R1 000 000.
Additionally, buying cover at a young age is advisable as premiums are typically lower.
In Summary:
Even with medical aid, critical illness cover can provide the financial cushion you need to focus on recovery without worrying about money. It’s about ensuring you and your family are financially protected during challenging times.
So, do you really need it? The answer is likely yes, for peace of mind and financial security.
Please speak to us if you would like to know more.