Severe Illness Insurance:

With the increase in life expectancy, unfortunately, we are witnessing a significant rise in the diagnosis of severe illnesses. Severe illness insurance provides financial compensation, which is deposited directly into the bank account shortly after diagnosis. This compensation is guaranteed and is not contingent upon receiving or pursuing any other form of compensation or undergoing any medical procedures. Typically, the compensation for a severe illness ranges from one hundred thousand to half a million shekels, according to the insured’s preference.

In the unfortunate event of an illness, emotional and financial difficulties are compounded. The purpose of the compensation is to provide economic support for various needs, including direct and indirect medical expenses not covered by kupat cholim, unforeseen expenses, private treatments, loss of income for family members, emotional care, leisure expenses, and more. The policy offers financial protection, mitigates economic impact, and allows family members to focus on the medical process and recovery.

The policy includes a list of severe illnesses, such as cancer, stroke, heart attack, Parkinson’s, multiple sclerosis, and more. The monthly cost of the policy increases every few years due to the increased risk associated with aging.

Children can also be insured under the policy at a relatively low cost. In the tragic event of a child’s illness, there is no mechanism compensating parents for the loss of income, and receiving financial compensation can significantly assist in such circumstances.

The policy itself encompasses a variety of severe illnesses that qualify for compensation. Additionally, there is a forecast of the monthly premium’s development over the years until the policy’s completion. When comparing various severe illness insurance policies among different insurance companies, it is essential to pay attention to the range of covered illnesses and the premium’s evolution over time.

Furthermore, if there is concern about a specific illness that is more prevalent in the family, it is advisable to ensure that it is included in the policy’s list. Some companies reduce the compensation amount as the insured ages.

Another aspect found in the fine print of the policy is compensation in the case of a recurring event. Typically, there is an option to expand compensation for a recurring event related to the same illness for which compensation was previously received. Additionally, there is usually a short exclusion period stating that if there is an early termination—within two weeks or a month—no compensation will be received, or it will be partial.

This policy has a maximum entry age and a fixed expiration time. Usually, the entry age is up to 65, and the policy’s completion is at age 75. The specific age varies among insurance companies. Most policies also have a three-month waiting period, meaning that if a severe illness is diagnosed within the first three months of the policy, the insured will not receive compensation.

The monthly cost is derived from age, gender, and smoking habits. In cases of complex health conditions, there may be an exclusion or a certain increase in the premium. Significant differences in this matter can often be found among different insurance companies. Therefore, it is recommended to initiate the process with two or three different insurance companies and obtain the best offer for the insured.