According to life insurer Bidvest Life, cancer was the fourth-most common cause of income protection claims during 2022 (1).
Melody Cloete, Training Specialist at Bidvest Life, says that when South Africans are diagnosed with cancer, or any critical illness for that matter, it’s vital that they have sufficient cover to ensure they can focus on their recovery without worrying about the associated costs.
“Advisers play a critical role in ensuring that their clients know their real needs and risks, and are covered correctly. By putting appropriate cover in place, they are protected from life’s curveballs and have claim certainty,” says Cloete.
Traditionally, advisers have sold cover that pays out a lump sum on diagnosis of a critical illness. Additionally, income protection will also pay out up to 100% of your insured monthly salary when you are not able to work due to a critical illness. In addition to these traditional benefits, Bidvest Life developed the Critical Illness Income (CI Income) benefit that can be added to income protection benefits to boost the payout for critical illnesses by an extra 30%, as well as guaranteeing a payout for up to 12 months (less your waiting period) regardless of whether you are able to work or not. CI Income increases a client’s ability to meet the additional monthly expenses such as food, transport, childcare costs and debt obligations that come with having a critical illness.
Bidvest Life policyholder Nandi* is living proof of the need for comprehensive critical illness cover. The 32-year-old teacher and mother of a three-year-old was diagnosed with Stage 3 breast cancer in August 2023 following a mammogram, sonar scan and biopsy. In September, she underwent a double mastectomy and breast reconstruction. A nipple reconstruction is planned as a second stage, and she will most likely need chemotherapy.
Nandi has been able to claim three pay-outs: her CI Income benefits provide ongoing monthly amounts and will continue to do so for 12 months following her diagnosis, her Critical Illness Lump Sum (CILS) benefit paid out 100% of her sum assured on diagnosis, and over and above that she received an additional 15% pay-out on her CILS benefit to fund the reconstructive surgery.
The reconstructive surgery benefit is automatically included in Bidvest Life’s Critical Illness Lump Sum cover if the Extender Option is selected. “Medical aids don’t generally pay for reconstruction,” says Cloete. “They see it as elective, but a woman would rarely choose to have her breast removed unless it was medically necessary.”
Cloete says that comprehensive income protection benefits should be the number one priority for every working South African, and advisers should ensure that their clients have both income protection and critical illness cover in place.
“Nandi’s story illustrates how the traditional approach to critical illness can fall short. Often, clients end up with only critical illness lump sum benefits in place and, while a lump sum is great to pay for once-off additional costs, it falls short in addressing the daily reality of those living with and fighting these terrible illnesses, and their associated costs,” says Cloete.
Moreover, if a client takes critical illness cover, the sum assured is often low as the cover can be expensive. CI Income, on the other hand, doesn’t just address those extra day-to-day needs, it is also a lot more affordable than a traditional lump sum benefit.
“Adding CI Income to Bidvest Life’s Temporary Income Protector or Event Based income benefits changes the way that a claim is assessed and paid, to support claimants when they need it most,” says Cloete. “We only require claimants to submit paperwork once, on diagnosis, and not every month, regardless of whether they can still work. This means that our clients don’t have to worry about additional appointments and admin when they are already ill. In Nandi’s case, where things happened quickly – from biopsy to diagnosis to surgery – we were able to provide the peace of mind that she and her family need to overcome the financial, physical and emotional toll of her illness.”
*Not her real name
(1) Bidvest Life 2022 Claims Report
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