Serious Illness Cover

A Serious Illness Policy will pay out a fixed lump sum if the policyholder gets diagnosed with a specified illness that is covered in the Terms & Conditions of the policy.

Unlike Income Protection which gets paid out monthly, a Serious Illness policy gets paid out once.

Serious Illness Cover can be bolted onto a Term Assurance Policy:

• A pay-out from an Accelerated Serious Illness Policy will reduce the Sum Assured on the Term Policy

• A pay-out from a Standalone Serious Illness Policy will pay out a separate lump and the Sum Assured on the Term Policy will remain the same.

Premiums to Serious Illness policies are not tax-deductible, but the pay-out itself is tax-free.

One needs to be very careful though with Serious Illness cover as not all illnesses are covered.