Serious Illness Cover

Serious Illness Cover is a policy that would benefit you, as well as your family, in the event of a claim. This type of policy pays out a lump sum in the event that you are diagnosed with one of the serious illnesses covered by the policy (which may include a stroke, cancer or heart attack). For other, less serious illnesses, only part of the cover will be paid out. The use of the lump sum paid out is at your discretion, however most clients allocate at least a portion of the funds to meeting living expenses, increased medical costs or the write-off of loans. Note that every insurance company provides cover for different illnesses, thus the specific illnesses for which insurance cover is available will also likely differ, as well as the criteria that is required to be fulfilled in order to receive the full amount of the cover.

The most common types of serious illness cover are outlined below:

• Accelerated Serious Illness Cover: This type of cover is usually purchased as an added benefit to a life insurance policy. It covers you if you become seriously ill during the policy term. For example, if you take out life insurance cover of €200,000 of which 50% represents serious illness cover, then you will be paid out €100,000 if you are diagnosed with one of the serious illnesses outlined in the policy. If you die within the policy term, your beneficiaries will be paid the remaining €100,000 of your policy value.
• Cancer Cover: This type of cover is usually purchased as an added benefit to a life insurance policy. It is designed specifically for those who want to seek protection against the diagnosis of cancer of a specified severity. Cancer cover is separate from serious illness cover as it provides insurance solely for this illness. Consequently, it is cheaper to purchase. If you have a pre-existing medical condition, you may find you are not eligible for more comprehensive cover but could be granted a more specific insurance protection like cancer cover.
• Personal Accident Insurance: This type of cover provides protection against a serious injury sustained as a result of an accident which prevents you from working. The cover will provide you and your family with a regular source of income, provided that the accident is covered by the insurance policy.
• Accidental Death Cover: This type of cover provides protection against the death of the policy holder resulting from injuries suffered in an accident, for example, a car accident. The policy will pay out a lump sum to the beneficiaries.
• Children’s Cover: This type of cover provides a specified payment, such as €15,000, to your children if they are diagnosed with one of the specified serious illnesses covered by the insurance policy
• Surgery Benefit: This type of cover provides an immediate payment should you be needing certain serious surgery procedures such as repair surgery, heart-valve replacement or coronary artery bypass.