The Standard Bank Serious Illness Cover protects you if you are diagnosed with a serious illness. The plan provides coverage ranging from R100,000 to R2 million, with premiums starting from R209.00 per month.
Individuals aged 18 to 60 are eligible for coverage, but the plan can only cover the primary policyholder. It does not provide coverage for children, spouses, or extended family members.
The Standard Bank Serious Illness cover comes with a condition that for the first 5 years of the plan, premiums paid to the plan increase by 6% each year. After 5 years, the policy is re-evaluated, and there may or may not be a premium increase.
When purchasing the policy, the policyholder is required to undergo blood tests within 90 days. Standard Bank can send a nurse to draw blood for testing for the purpose of the policy at no extra cost.
The Standard Bank Serious Illness Cover provides coverage for four critical illnesses, and if the policyholder is diagnosed with one of them, the plan will pay out. We cover the critical illnesses that are covered by the plan below.
Standard Bank Serious Illness Cover Benefits
The Standard Bank Serious Illness Cover provides the policyholder with a variety of benefits. While the plan does not cover the majority of critical illnesses, it does cover some of the most common ones.
The serious illnesses covered by the plan are listed below.
The plan covers the primary member for stroke and pays out if the policyholder has a stroke. Stroke of any severity is covered under the plan, and when a claim is made, the full cover amount is paid out.
The policyholder can spend the payout for a stroke however he or she sees fit. Since there is no taxation on the payout, the beneficiary will receive the entire payout amount.
Open heart surgery
The Standard Bank Serious Illness Cover covers any hospitalization that requires open heart surgery. Following a successful claim, the plan pays the cover amount directly to the policy beneficiary.
Despite the fact that the plan covers open heart surgery, it should not be used in place of a medical aid or health care plan. After a certain number of days from a successful claim, the plan only pays a lump sum.
The Standard Bank Serious Illness Cover policy also includes coverage for heart attacks. If the policyholder suffers a heart attack as described in the policy, the policyholder may file a claim.
A claim for a heart attack is paid out right away if the claim is successful. The beneficiary receives a non-taxable lump sum payment equal to the cover amount.
Cancer is one of the serious illnesses covered under the Standard Bank Serious Illness Cover, and a claim can be made for up to R2 million depending on the chosen cover amount. The payout can be used to pay for treatment, purchase necessary medication, buy home equipment, or any other essential items to ease life during cancer treatment.
The payout amount is tax-free, and the beneficiary can spend it as they see fit. It should be noted that the plan does not cover the cost of cancer treatment but rather provides a cash payout if the policyholder is diagnosed with cancer.
Individuals who withhold information or fail to make disclosures under the plan are not eligible for claims under the policy. The product does not cover injuries sustained while breaking the law or knowingly participating in criminal acts. Claims cannot be made for intentional exposure to war, hostile military action, or terrorist acts; nuclear/atomic fallout, as well as biological or chemical warfare agents; or participation in dangerous or risky sports or activities on a regular basis.
Advantages of Standard Bank Serious Illness Cover
The policy covers a range of serious illnesses. The plan’s payout is tax-free, so there is no capital gains tax or any other type of tax. The plan can be purchased entirely online, eliminating the need to visit a Standard Bank branch. The cover’s maximum coverage is very high, and the premiums are very competitive. After a successful claim, the payout is made available, and the beneficiary may use the payout amount in any way they see fit. There are no medical exams, and the underwriting process is simple as it can be completed over the phone.
Disadvantages of Standard Bank Serious Illness Cover
The plan excludes coverage for most known critical illnesses and only covers a subset of them. The plan does not include any cash-back benefits, and it excludes immediate and extended family members. For the first five years, premiums increase by 6%, while coverage remains unchanged.
Standard Bank Serious Illness Cover Application
To apply for the plan, the applicant must be between the ages of 18 and 60. They must also be a South African citizen with a valid South African ID book or Smart card, have their bank account, and know their height and weight details.
The Standard Bank Serious Illness Cover only covers the primary member and can provide up to R2 million in coverage. The primary member receives numerous benefits under the policy, which covers heart attacks, strokes, cancer, and open surgery. If the policyholder has one of the covered illnesses, a non-taxable lump sum payment is made available to them.
The plan’s major drawback is that it does not cover immediate family, making it inflexible. Furthermore, benefits such as cashback are not available with the plan, so policyholders do not receive any of their money back even when they are claim-free.