As a working individual, it is important to have health insurance to secure you financially when you get sick. We often pay premiums for our insurance, and some of us seek more comprehensive coverage by paying higher premiums.

Insurance can help cover the costs of medical treatments. However, what happens if you fall sick and can no longer work? This is where a disease allowance comes in. In this article, we will look at when you can receive a disease allowance and how your premium will increase.

What is a Disease Allowance?

A disease allowance is provided to the policyholder when they cannot work due to a specific illness or disability. This is an additional benefit in many medical insurance policies that cover loss of income for the policyholder.

This benefit from the policy takes care of the policyholder’s necessary expenses during their time off work. It helps the insured person cover their daily living expenses while they recover from the illness.

When Can You Receive a Disease Allowance?

Individuals can receive a disease allowance when they are unable to work due to illness or disability elicited in the policy. However, the benefit can only be activated under certain conditions:.

Related Article Disease Allowance Eligibility and How it Impacts Your Premiums

1. The Policyholder must have a Comprehensive Medical Insurance Policy
2. The Policyholder must have been diagnosed with an illness stated within the policy
3. The medical condition must be certified by a healthcare professional, or by a doctor’s report
4. The policy must be in effect for a minimum waiting period as written in the policy
5. After the policyholder has been unable to work due to illness or disability for the defined waiting period

How Will Your Premium Increase?

Having a disease allowance in your Comprehensive Medical Insurance Policy will trigger an increase in your premium. The purpose of this increase is to cover the additional cost of the allowance benefit.

A disease allowance will increase your premium depending on the additional amount being added to the medical insurance policy. This has a negligible increase in the premium when we consider the added benefits it provides. Moreover, the existing medical illnesses won’t be covered by an insurance policy. You must check the policy terms and conditions to know what is covered.

Conclusion

Getting a disease allowance is a brilliant idea for anyone who works and depends on a salary. It provides a sense of security that assists policyholders pay their daily living expenses until they recover.

However, it is necessary to consult with your insurance provider to find more information about the benefits and criteria. More, it is free to check if you are eligible for sickness benefit or the cost of sickness allowance services from the Social Welfare services, and it will not affect your medical insurance policies.