Insurance cover remains a topic which is very overwhelming to many of us. Insurance cover often winds up on the « I will do it later » list, as opposed to the « Important things I must do today » list. By comprehending the different types of insurance cover, which range from short-term insurance to long term insurance, as well as factors including health plans, disability plans and perhaps terminally illness plans, it will be much simpler to make a knowledgeable and educated choice on the best types of insurance for your needs and requirements.
One of the main factors that cause the frustration might just be the different phrases that are used for the very same product. Let’s use health plans to give an example. Health plans can also be called health cover or a health insurance policy, and then it can be further categorized as health cover for critical illness, health cover for cancer etc. And even the subcategories such as critical illness cover, can be grouped as dread disease cover or trauma cover. Quite perplexing, don’t you think?
The simplest way to determine which health plans you ought to investigate, is by reversing the matter a bit. To paraphrase, rather than taking a look at the available plans and policies hoping to determine which policy will suit your needs and requirements best, first analyse your needs and requirements, and then start hunting for a policy that offers what you are seeking. To put it differently, if you are scared of the possible cost implications that being diagnosed with cancer will bring about, you can acquire health cover for cancer. Did you know 1 in 6 South Africans will get cancer at some time during their lives? Although you may have medical aid in place, the related costs with cancer treatments can be quite unbelievable and not all medical aids can cover everything.
The primary difference between health plans and medical aids is the following: With a medical aid you have a certain amount available for medicine, treatments, surgeries etc. This differs from one plan to the next, but might include a specific amount for visits to the dentist, another amount for visits to the optometrist and possibly a savings account for medicine and visits to your local doctor. Once these funds are depleted, they are depleted and you have to cover the balance out of your own pocket. Health plans on the other hand, make funds available which you can then apply in areas where you need to. If you are diagnosed with an illness such as our cancer example, you might not be able to work and earn an income, and while your medical aid might cover a lot of your treatments costs, you will need additional money to make up for the loss of income, your associated changes in lifestyle etc. The very next time you meet with your broker or insurance professional, make sure to discuss the different health plans as well as life term life insurance and whole of life life insurance plans available and put money into one that would suit your needs best.
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