Redefining severe illness cover in a time of COVID-19

At the start of this devastating pandemic, many South Africans became acutely aware of the fragility of life. COVID-19 quickly became widespread due to its highly contagious nature.

Even worse, COVID-19 proved to be deadly, too.

Lives and livelihoods were at a new level of risk almost overnight.

For many South Africans, the reality hit home starkly: What if my health is severely affected by the virus? What if I don’t survive this? What if someone I love doesn’t survive this?

Life insurance as a key financial support mechanism

As the COVID-19 pandemic progressed, many South Africans with a life insurance policy began reviewing their plans to cross-check their specific cover.

This gave rise to numerous questions about how COVID-19 claims would be handled. Specifically, how is COVID-19 covered by life insurance and severe illness benefits?

In this new risk context, insurers have had to re-examine their benefits. Not just in terms of the claims they expect to pay and have paid, but also in relation to their ability to provide relevant cover to their clients.

“Life cover must remain relevant to the needs of policyholders and their beneficiaries,” says Head of Market Analytics and Research and Development, Kashmeera Kanji.

“After all, life cover is all about providing much-needed financial security alongside preserving the quality of life”, she adds.

“In particular, we have seen our clients recognise the relevance of our life insurance policies. Lapse rates at one point were at their lowest levels ever, despite the increased financial strain in the economy due to the pandemic.”

Severe illness benefits in COVID-19 context

Critical illness or dread disease cover pays out a lump sum on qualifying severe illnesses. To qualify, a severe illness must meet the set criteria of a specific definition.

For years, these definitions and their associated payouts have been evolving to cater for advancements in the diagnosis and treatment of medical conditions.

Prior to 2020, rampant, serious infection as a result of COVID-19 was not known of or understood and so was not on the list of qualifying conditions.

Today, acute multi-organ failure as a result of COVID-19 infection is in the same league as other severe illnesses such as cancer or heart disease – simply because of how severe and life-threatening it can be.

“At Discovery Life, we immediately evaluated our already comprehensive severe illness benefits to see where we could re-engineer our product to provide the comprehensive cover we anticipated so many of our client base would quickly need,” says Kanji.

“We enhanced our benefit to cater for the new health risks that COVID-19 infection presents so clients have access to the most comprehensive and holistic severe illness cover on the market that matches the risks that we are now all exposed to.”

“This enhancement is our market-first Multi-organ Benefit,” she explains. “We realised that industry-wide, clients were left financially exposed to the effects of acute multi-organ failure.”

Your severe illness cover needs to be comprehensive and holistic

Despite being top of mind, COVID-19 is not the only rampant severe illness we face.

Cancer, heart disease and nervous system conditions, among many others, remain prevalent. So, it makes sense to take a more responsible approach when it comes to choosing your severe illness cover.

“In designing Discovery Life’s product suite, we ensure comprehensive and holistic cover for all of our clients and across the entire spectrum of risks.

“One of our flagship benefits is the LifeTime Severe Illness Benefit, which is recognised for its comprehensive offering, including significant cover for cancer – from early-stage to late-stage cancers, as well as cover for cancer relapse,” says Kanji.

“We pride ourselves on providing the very best protective risk benefits. It enables us to stay true to our core purpose of making people healthier, and enhancing and protecting their lives in a highly meaningful way,” she adds.

“The Severe Illness Benefit offers unparalleled value that can truly make a difference in a time of need when faced with severe illness,” she concludes.

For more details on our Severe Illness Benefit, speak to a financial adviser today or get a quote in 60 seconds.

Disclaimer

Discovery Life Limited, registration number 1966/003901/06, is a licensed life insurer and authorised financial services and registered credit provider, NCR registration number NCRCP3555. Product rules, terms and conditions apply.