Dread disease insurance
Why a Dread Disease insurance makes sense?
It is perhaps one of the worst scenarios imaginable for personal well-being: the onset of a poorly curable, possibly even fatal, disease. In many cases, people who are seriously ill can no longer work, their income is lost, and a gap in care threatens to develop.
Because very few patients can still work in this case. The performance decreases rapidly in many severe diseases.
The reduction of physical abilities as well as the loss of strength are the consequences of insidious diseases. What remains is the concern about maintaining the accustomed standard of living.
But for this bad case, the possibility of private provision exists: namely, in the form of dread disease insurance, also known as insurance against serious illness or serious illness provision. It is a term insurance policy that provides coverage at the Diagnosis of a serious illness benefits. These include cancer, kidney failure or stroke, among others. Which illnesses are included in the scope of benefits depends on the individual provider and tariff. In the event of a claim, no annuity is normally paid, but rather a prearranged amount Single sum.
Dread disease insurance is still a very young product. It was developed in 1983 in South Africa by Dr. Marius Barnard. The heart surgeon developed the coverage because his patients, most of whom were poor, often couldn't afford treatment when a serious illness struck them. In addition to the challenge of recovery, the patients now also had to face financial difficulties. In his search for a solution to the problem, Dr. Barnard approached the local insurance companies. The "Dread Disease Insurance" was finally developed from this cooperation. For his work as a physician and the creation of this useful insurance, Dr. Marius Barnard several awards.
Via the Anglo-American region, it finally reached the German insurance market in 1993. Here, too, it retained its original function. It was introduced to provide financial security for the insured person in the event of a serious illness. Dread disease insurance was and still is popular, especially in countries where there is no comprehensive health care coverage. In Germany, this insurance is still relatively unknown, but is becoming increasingly important.
– hardly known in Germany so far – offered by only a few insurance companies – currently available as a stand-alone product from three providers: Skandia, Canada Life, Gothaer Versicherungen – as an additional benefit when taking out an annuity insurance policy: Provinzial Versicherung – can be taken out regardless of occupation – purpose: to bridge financial emergency situations in the event of serious illnesses – the number of insured illnesses varies depending on the tariff and provider
Overview of benefits:
– financial parachute in the event of serious illness – rapid payment of benefits after receipt of the medical report – immediate access to the full sum insured through a one-time payout – benefits are paid regardless of occupational or earning capacity – benefits are paid regardless of subsequent recovery – own children between 1 and 17 years of age are also insured, often free of charge, depending on the provider – one-time payout is income tax-free – some providers do not charge insurance tax on premiums
What benefits are covered?
Dread disease insurance is often offered in two variants offered: as Basic protection and comfort protection. With the basic policy, the insured person receives coverage against a small selection of serious illnesses. The scope of a basic policy covers about eight diseases. With comfort cover, the scope of benefits includes bis up to 43 diseases. Some tariffs even pay in the event of a serious accident with the comfort policy.
Please contact the respective insurance company to find out how the insurance cover is structured in detail. The tariffs differ in part very strongly from one another. You should therefore consult an independent expert before taking out a dread disease insurance policy. We will be happy to advise you on all matters relating to Dread Disease insurance and similar products.
Dread disease insurance not only supports the insured person if benefits are paid, but often also his or her dependents. Many of the serious illnesses insured often have fatal consequences. What is left behind is a family that has not only lost a loved one, but also an earner. Financial resources are used by affected individuals for a variety of purposes:
– Bridging of financial bottlenecks caused by the loss of working capacity – Financing of medical treatments, therapies and rehabilitation measures – Monetary support for the family in the event of the death of the insured person
If there is still hope of recovery for the insured person, the insurance is the ideal solution for the Financing of expensive or alternative therapies. Due to the financial benefit, the Dread Disease insurance can become a life saver.
What to consider before taking out insurance?
As with many other types of insurance, the insurance coverage with some providers only begins after a certain Waiting period.
The waiting period extends from the date of the start of insurance to the start of insurance coverage. If the insured person falls ill with one of the specified diseases during this period, the Dread Disease insurance will only pay out conditionally.
Waiting periods can vary depending on the diagnosis. For example, the waiting period for multiple sclerosis lasts up to one year for some tariffs. In addition, some policies include a dynamic feature in which the sum insured is regularly increased – even without a new health check. This can lead to extended waiting periods.
Waiting period versus waiting period
Another ie with dread disease insurance is the waiting period. This term refers to the period of time between the occurrence of the benefit event. The payment of the agreed insured sum. In contrast to the occupational disability insurance, the waiting periods here are relatively short. Because in order to receive the benefit, only the presentation of the disease findings from the attending physician is necessary. Depending on the case, the waiting period is between 14 days and one month.
Example of waiting and grace periods: Skandia Insurances
– Waiting period: Three months after the start of insurance until the first diagnosis of cancer and bypass surgery – Waiting period: 14 days after the diagnosis of an insured serious illness is made by a specialist or confirmation of the need for surgery or. of a transplant
The waiting and waiting periods you can expect at the time of purchase are usually specified in the insurance conditions. The other conditions also differ depending on the provider and tariff. Before you take out a dread disease insurance, check exactly what benefits you are awarded in the tariff:
1. Which serious illnesses are insured? 2. What additional benefits you can take out? 3. Which exceptions are included in the tariff?
If you need help comparing different providers, contact the team at VersicherungsCheck24. We will select tariffs for you that meet your needs.
When does a Dread Disease insurance pay out?
Dread disease insurance provides coverage in the event that one of several previously specified serious illnesses occurrence. Each insurance company maintains its own catalog of illnesses, which includes various forms of complaints. These include, among others:
– Diseases of old age – Common diseases – Brain diseases – Diseases of the central nervous system
But also other diagnoses such as burns or the loss of limbs are insured with some tariffs of the dread disease insurance. Which and how many illnesses are included in the insurance coverage varies depending on the provider and the tariff. Which serious illnesses are typically covered by dread disease insurance?? Here is a short overview.
The following illnesses can be covered (depending on provider and tariff):
– HIV infection – Cancer – Heart disease – Bypass surgery – Chronic kidney failure – Stroke – Multiple sclerosis – Blindness – Paralysis – Organ transplant – Coma – Severe burns
You are interested in a dread disease insurance, but do not know which provider offers the right tariff for your needs? Then call us! We advise you on all aspects of Dread Disease insurance – free of charge! Please feel free to use our free hotline.
When does a Dread Disease insurance not pay?
Since the conditions for the occurrence of an insured event are very clearly defined – namely on the basis of the catalog of illnesses – it is also easy to determine when the Dread Disease insurance does not pay out: always in the case of, if a disease other than those insured occurs. The limits are thus determined on the basis of the benefits catalog. Somewhat more generally, it can be said that Dread Disease Insurance (with a few exceptions for particularly high-performance tariffs) at accidents and mental illnesses generally does not apply. Therefore, it is advisable to take out additional insurance such as private accident insurance.
Can additional modules be insured? List. Sometimes, for this purpose, a distinction is made between basic-. Distinguished comfort tariff. For this purpose, a distinction is sometimes made between a basic-. Comfort tariff.
Other options for expanding insurance coverage include the following measures:
Second EventIf this is stated in the insurance contract, it means that the sum insured will be paid out again if a second serious illness occurs. So, in this case, the insurance coverage does not expire after the first claim. Death benefitsIn the event that the policyholder dies without having claimed the benefits of the dread disease insurance (for example, in the event of a serious traffic accident), it can be agreed that part of the sum insured will be paid out to the dependents as a death benefit. Surplus participationSince the Dread Disease insurance is a pure risk insurance, normally no premiums are refunded if the insured event has not occurred during the contract period. However, some plans provide for surplus participation because the money paid in is invested in investment funds.
When does coverage begin?
The conditions for the insurance cover to kick in are first of all the Acceptance of the application by the insurer and the payment of the first insurance premium by the insured person. However, there is a time lag between the agreed start of the insurance and the actual commencement of the insurance cover Waiting period. In most cases this amounts to three months, but may also vary with regard to the various diagnoses.
Which coverage amounts make sense?
The amount of the sum insured can be determined for dread disease insurance freely chosen can be made and should be adapted to the respective life situation. For example, 200.000 euros. How much, however, makes sense in the specific situation should be determined together with the insurance advisor on the basis of the individual needs can be decided. The following considerations may be helpful in determining the amount of coverage for Dread Disease insurance:
1. Are Loans to be paid off, for example for the residential property? 2. Are your children (or even you yourself) still in the Training? 3. Are there one or two regular dependents in the family Income? 4. How extensive would the work to be done on your house be? Conversion work, in case of a physical disability? What is the premium based on?. What factors influence the premium rate?The amount of the premiums depends on various variables, however, the practiced profession and the resulting occupational risk no role play. This is one of the main differences between the Dread Disease Insurance. Other pension products for the protection of the working capacity. Important, however, are the Age and gender of the insurance claimant, because – statistically speaking – certain illnesses may occur more frequently in women or men and above a certain age.
In addition to these biological factors, the amount of the premium for the dread disease insurance is also determined by the Scope of benefits an important role. This includes, on the one hand, how extensive the catalog of recognized illnesses is, but also which additional agreements have been made, for example in the form of a death benefit or surplus participation. Of course, the amount of the Coverage amount decisive. Another factor that can influence the premium amount is the Term of the contract.
What are the advantages of a comparison of the Dread Disease insurance??
The question of a comparison of the Dread Disease insurance refers very often to the one in this country far more usual Occupational disability insurance (BU), although it is difficult to compare the two directly with each other.
Although both policies cover the insured person in the event of illness, the remaining conditions differ greatly from each other.
This can be seen, for example, in the Requirements In contrast to occupational disability insurance, dread disease insurance also pays out if the insured person is still able to work or is in good health. is able to work. Furthermore, the Occupation as well as the occupational risk are already irrelevant at the time the policy is taken out – quite unlike with occupational disability insurance. Here these factors are decisive criteria for the premium amount and even for the decision whether you get a BU at all. For this it must play Benefit case the Dread Disease insurance is about a previously defined serious illness. The occupational disability insurance, on the other hand, is not limited to serious illnesses, but also pays out in the event of accidents and psychological complaints.
Optimal protection can be obtained, for example, by taking out an occupational disability insurance policy. Both products cover different types of physical and mental disability.
There are companies, such as Gothaer Versicherung, which offer dread disease insurance as part of a benefits package. In this way, benefits for occupational disability can be bundled with those for serious illnesses or the need for long-term care.
A flexible adjustment of the insurance cover as well as the premium can be made?
Bottlenecks in the private budget can lead to the fact that the monthly premiums of insurances cannot be served any longer. In order to relieve the policyholder financially, many insurance companies allow a waiver of premiums.
As is the case with many other pension products, under certain circumstances this option can also be used for Dread Disease insurance Exemption from premiums are perceived. It is in any case an alternative to termination. The insurance coverage remains in force, but the insured person receives a smaller sum in the event of a claim due to the lower surrender value. As a result of the exemption from premium payment, the insured person thus generally suffers a financial disadvantage. Therefore, a waiver of premiums should only be implemented in extreme emergencies.
Possible reasons for exemption from premium payment:
– Unemployment – indebtedness or – similar causes of financial bottlenecks are
When a waiver of premium is requested for dread disease insurance, some providers conduct an unscheduled policy review. The same applies to the resumption of premium payment. In addition, there may be a deduction for the exemption of the Dread Disease insurance. This usually offsets the upcoming processing expense. How high the deduction is in detail, you will usually find out in the guarantee value table of your policy.
Another form of flexible contribution is the so-called Post-insurance guarantee. Usually this offer exists with an occupational disability insurance. This term refers to an increase in the insured benefit without having to undergo a new health examination. By adjusting the sum insured, it is possible to compensate for any increase in the financial needs of the insured person. The subsequent insurance guarantee is also available for dread disease insurance. Whether there are any costs involved in this process depends on the company in question. However, there are providers who carry out an adjustment of the sum insured of the Dread Disease insurance free of charge.
There are many reasons for adjusting coverage under a dread disease policy. Possible reasons for exercising the subsequent insurance guarantee can be:
– Completion of a course of study – Taking up a job – Construction or. Purchase of a home – Increase in income – Taking out a loan – Marriage – Birth – Adoption
However, there are also insurance tariffs, for example with Canada Life, which include a non-event-related subsequent insurance guarantee. With this offer, the policyholder can adjust the coverage of the Dread Disease insurance regardless of serious life events. We will be happy to explain to you in a free consultation what else you should pay attention to when taking out a dread disease insurance policy. Call us!
Can the premiums for dread disease insurance be deducted from taxes??
Yes, the deduction of premiums for Dread Disease insurance is generally possible because it is a pension product. The tax recognition is based on § 10 EStG (special expenses). However, a maximum limit of 1900 resp. 2800 Euro per year. Since health, long-term care and pension insurance are also listed here, the specification of the premiums for dread disease insurance only has a tax-reducing effect if this maximum amount has not yet been exhausted.
The Single payment of the Dread Disease insurance is besides, similarly as with accident insurance, to be exempt from income tax. However, the Dread Disease insurance payout is subject to gifting or. Inheritance tax if a third party is to receive the insurance sum. With some providers, policyholders also do not pay insurance taxes on premiums.
What to consider when canceling?
Cancellation is possible, but should be thought through very carefully in advance. First of all, it does not require any special reason and can be in each case at the end of the current insurance period take place.
With most offerers applies for this a Notice period of one month. Theoretically, the payment of the so-called Repurchase value of the Dread Disease insurance is due to the policyholder. In practice, however, this surrender value is very low or perhaps even non-existent, because – especially at the beginning – the acquisition and sales costs for the dread disease insurance are offset against the incoming premiums. This procedure is permissible and common practice, but causes financial disadvantages in the event of premature cancellation of the contract by the policyholder. If, within the scope of the dread disease insurance, a Surplus participation If a mutation occurs in the stable and no horse is protected, the policyholder will be reimbursed the corresponding paid out.
Due to the expected financial losses, it is more advisable to continue the dread disease insurance for a while instead of terminating it non-contributory. In this case, the insurance coverage remains in force, even if the amount of coverage is naturally reduced. The prerequisite, however, is that a certain (albeit comparatively small) balance has already been accumulated by the time the contribution is released.
What to consider when switching?
Before changing the dread disease insurance, similar considerations should be made as with the cancellation – after all, this is the prerequisite for the switch. It must therefore be amed, especially in the case of early termination, that this will result in a financial disadvantage. It may be necessary to consider whether it would be more economical in this case to suspend premiums on the current dread disease insurance policy and take out a second policy.
It must also be remembered that the premiums depend, among other things, on the age of the policyholder at the time the contract is concluded. Certain previous diseases also play a role. So you have to check carefully whether the insurance conditions of the new Dread Disease insurance are actually more favorable for you.
If you are thinking about changing your insurance, it is best to seek the professional advice of an insurance expert. This can determine for you which procedure is the most favorable one.