Can you explain all about multi-claim protection cover?

Q My friend recently had a heart attack, he did not have health insurance and is now struggling with both his health and finances. This has prompted me to start researching insurance cover, such as Income Protection, Cancer Cover and Specified Illness Cover. The cover that sounded most suitable for me was Multi-Claim Protection Cover. Can you tell me how this cover works and do I need separate health insurance as well?

A Multi-Claim Protection Cover is a life and illness protection policy. It provides a lump sum payment to help protect you from the financial impact of a serious illness, such as a heart attack, receiving cancer treatment and a range of surgeries. Multi-Claim Protection Cover also covers other major health impacts requiring a long hospital stay, after a serious road traffic accident for example.

It is a ‘severity-based policy’, meaning payouts are calculated on the impact of the medical condition, treatment or event, i.e. how severe the impact is. There are eight levels of severity to determine how much money is paid out. These levels reflect the general impact the condition or treatment may have on you and your lifestyle. So, rather than claims just being paid based on a long list of medical conditions, payouts are also paid in consideration of a person’s inability to perform certain day-to-day tasks without help.

Claims are paid for covered events, which may occur over the lifetime of your policy. It is possible to claim multiple times, until the sum assured (amount of cover in place) is fully paid out. Alternatively, it may pay all of your remaining sum, assured as a lump sum, if you die or are diagnosed with a terminal illness during the term of the policy. After a claim, your monthly payments (premiums) will not change.

So, do you need Multi Claim Protection Cover and Health Insurance?

While you don’t necessarily require both, they complement each other and guarantee you security in the face of an unpredictable health crisis. Health insurance will cover treatment costs, while Multi Claim Protection Cover will pay you a guaranteed percentage of your cover.

This lump sum may contribute to expenses incurred while receiving treatment but you can choose to use this money as you wish.

This article aims to give information, not advice. Always do your own research and/or seek out advice from a Financial Broker before acting on anything contained in this article.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top