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can reasonably be expected in medical terms. In other words, the insurer has to be certain that any
further (reasonable) medical intervention would not lead to recovery.
Functional impairment
Functional impairment is concerned with the proper functioning of the body as an integrated
system. It would typically cover the central nervous system, the respiratory system, and the gastro-
intestinal system.
Physical impairment
Physical Impairment is geared more towards the separate components, or limbs, of the body. It
would typically cover the permanent loss of feet, hands, arms, ears, eyes, speech and hearing.
Remember: Impairment is assessed by strict medial conditions and NOT your ability to earn an
income.
Dread Disease cover
Dread Disease cover is not always easy to distinguish from impairment cover. The most prominent
difference is that a dread disease benefit will be paid once it has been diagnosed, even if the
condition is not necessarily permanent. The insurer will assess a claim without looking at the
claimant’s ability to do his job, and without waiting to see whether the condition will get worse or
better. If the disease qualifies in terms of the conditions of the contract, the insurer will pay out as
soon as it has been diagnosed.
For instance, if the insured has suffered a heart attack that meets the qualifying criteria, the insurer
will pay out, regardless of whether the client will be able to go back to work, or of whether he will
recover sufficiently to lead a normal life again. A list of qualifying conditions is stipulated in the
contract, along with specified percentages of the cover amount for each condition. Claim events
will typically include cancer, heart attacks, heart valve surgery, strokes – the diseases most
dreaded for their severe traumatic impact on the lives of the victims.
The fact that the claim condition does not have to be permanent, and does not have to be optimally
treated before a claim can be assessed, means that it will be easier to qualify for dread disease
benefits than for impairment benefits. It also means that dread disease benefits will be more
expensive than impairment or disability benefits.
“It was never meant to play the role of a medical aid or provide cover for occupational disability.
Dread disease cover was conceptualised by Prof Marius Barnard with the intention of ensuring
people who are diagnosed with severe illnesses that will have a major impact on their financial
situation, are able to claim for financial assistance.” (Dr Eric Starke – Sanlam Medical Doctor)