Surviving a 'Health Shock'

Unexpected health shocks can cause significant financial distress in addition to the physical, emotional and practical challenges caused by ill health, John Kotze, the head of Group Assurance at Old Mutual, says. 

Medical research starkly underlines the potential impact of illness and injury on our lives. For example:

* One in four South Africans will develop cancer in their lifetime. 
* Up to 50% of people who survive a stroke will need help with self-care.
* For each death due to a motor accident or violence, many survivors are left with disabilities.
 
Traditional group benefits insure the death or disability of the employee and major medical expenses are taken care of by medical scheme cover.

But, while most of us are aware of the need to make adequate financial provision in the event of our death, few consider the financial implications of surviving accident or illness and having to cope with significant physical limitations during our lifetime, Kotze says. 

"Survivors of acute illness or injury often face major adaptations in lifestyle.  Rehabilitation or long-term assistance may cost much more than the medical scheme and/or disability cover provides.  To address this financial need, we have put together a flexible solution for employee groups," says Kotze.

Old Mutual's new Critical Incidents Cover provides general financial assistance after a health shock.  Benefit payment will be triggered by, for instance, severe illnesses and injuries, or the need for significant medical interventions, such as the need for certain organ transplants.

"Our Critical Incidents Cover complements the death, disability and medical scheme cover that employers provide for their staff," Kotze says. "It meets a need that falls outside the scope of these products, covering unexpected expenses that result from a significant change in ones lifestyle or physical ability."

"Our product provides for three levels of cover core, comprehensive and extensive allowing employers to provide the extent of the cover that is cost-effective for their specific circumstances," says Kotze.

The core level is the most affordable of the three options and provides full cover for relatively common conditions such as stroke, cancer, heart attack, paralysis, blindness, burns and organ transplants. 

The comprehensive option provides full cover for all the above incidents plus many more, including full-blown AIDS, Multiple Sclerosis (MS), facial disfigurement, loss of speech, Rheumatoid Arthritis (RA) and accidental infection with HIV.

The extensive option provides full cover for all the conditions covered by the comprehensive level, and also adds partial benefits, which provide for a proportion of the total insured amount, for certain conditions.  A range of heart-related procedures, diabetes, losing the use of part of a limb and loss of hearing are events that will trigger payment of amounts ranging from 10% to 60% of the insured amount depending on the illness or impairment.