Dread Disease Cover

This benefit pays out a lump sum when you are diagnosed with a critical illness. In some cases, it can be paid out as an income. Dread disease is also sometimes referred to as trauma cover. It covers you for serious, life-changing diseases. The most common of these are heart attacks, cancer and strokes, but it can include thinks like multiple sclerosis and motor neuron disease. Some companies cover a rather limited amount of conditions, while other cover a wider range. Similarly, some companies have long survival periods, while others have no survival periods.

A survival period works like this: If you have a heart attack and you die, your trauma cover won’t pay out, but your death cover will. However, if you do not die, some companies have a 14 or a 28-day survival period, some have a survival period of 3 months or more, and others have none. This means that your trauma cover will pay out after the survival period if you have a heart attack and survive. If you pass away before the survival period has passed, your trauma cover won’t pay out – only your life cover will. So, again, if you have a heart attack and survive, but die after 3 days, some companies will pay out your trauma cover and your life insurance, and others will only pay your life insurance.

Some companies also allow for things like multiple claims, meaning that you can claim more than once for the same illness.

As for policies that are specifically intended for commercial use, we offer:

  • Key person policies: These policies cover the key person in a business. Should anything happen to him/her that leaves them unable to work, the policy can pay out the business income, referred to as overhead protectors. This includes the key person’s salary, as well as company expenses. If the key person passes away, it pays out money to the business, to train and replace the key person.
  • Buy and sell agreements: These are policies taken out on the lives of the business partners. When a partner dies, the money pays out to the remaining partners, and they use it to buy the deceased partner’s shares from his estate. This is to ensure proper business contingency. Should a business partner who has a young child pass away, the child would not be able to run the business, even though they might inherit the shares. A buy and sell agreement allows another business partner to buy the shares, take ownership of and run the business, while the child receives the money.