1. You can use severe illness insurance:

In place of membership of a medical scheme.

In place of disability insurance.

If you want to complement your disability insurance and medical scheme cover.

If you are underinsured on disability insurance.

2. Which statement is false. Severe illness insurance may only cover you for …

A heart attack, heart bypass, cancer or stroke.

About 300 illnesses.

About 100 illnesses.

Permanent disabilities.

3. Which statement is correct. Life insurers pay out less than 100% of your severe illness insured amount if your illness is less severe …

Because they want to keep the premiums down.

To preserve your benefits for additional claims if your illness progresses.

So they can make more profit.

Because there are rules about how much must be paid out for different severity levels.

4. Which statement is correct. If a severe illness policy includes a “catch-all” benefit for illnesses …

The life insurer just has a good marketing message.

The life insurer will pay for diseases that are contagious.

The policy will cover your whole family.

Benefits will be paid on diagnosis of illnesses that have not been listed in the policy, as long as the illness causes a certain level of impairment.