What is Serious Illness Cover?

   15 Apr 2019

Serious illness is an often overlooked option when insuring your life, but can be a great option to ensure that you’re covered when you need it most. This is a type of coverage that pretty much does as it says in the tin, which is to say it gives you coverage in the case of serious or critical illness.

You choose an amount that you want the insurer to pay out should you get a critical or serious illness. What is covered is outlined in your policy documents and your financial advisor can go through the specifics of what is and is not covered with you. Should you happen to fall ill with one of these illnesses, the insurance company will pay out the insured sum, tax-free.

Many people worry about whether they will be able to be covered if you’ve had certain illnesses or conditions in the past, such as heart conditions or cancer. The good news is that in many cases the answer is yes! Most companies will require exclusions or limitations depending on the pre-existing conditions you’ve disclosed, but your independent advisor can help you find the company that gives you the best coverage available.

If you’re looking for coverage that doesn’t affect your larger life or mortgage insurance policy, you can choose to get ‘standalone’ serious illness, which will pay out the insured amount, or in some cases smaller amounts up to the amount assured. Alternatively, you can get serious illness coverage as an add on to your life insurance coverage, which will reduce any final life payment in the case of your passing, but gives you a payout when you really need it.

If you’re interested in learning more about your options, be sure to talk to one of our independent financial advisers today.