Dread Disease Insurance: Financial security in case of serious illness

Dread Disease Insurance: Financial security in case of serious illness

The dread disease insurance is a sensible alternative for anyone who can not or does not want to take out occupational disability insurance. The insurance provides financial protection if the insured seriously ill, such as cancer or a stroke. With the money affected people can adapt their home to the new conditions or finance additional medical benefits.

Table of Contents

  • definition
  • Insured illnesses
  • advantages and disadvantages
  • pitfalls
  • Costs and tests

What is Dread Disease Insurance?

A stroke, a cancer or the diagnosis of multiple sclerosis (MS) changes the lives of those affected from one to the next. What was just natural, can now represent a great physical and emotional burden. Working and earning money is no longer possible for many critically ill persons or only to a limited extent. So join the health concerns and financial problems.

The dread disease insurance takes insured financial existence fears. Because she pays them a one-time sum, with which, for example, the home can be converted. If sufferers have taken out a loan to build or buy a home, this can be continued with the one-time payment. If those affected need a new, disability-friendly car, the Dread Disease Insurance money can also be used.

The insurance, also known as Severe Diseases Insurance, is an alternative for anyone who can not or does not want to take out occupational disability insurance or disability insurance. She counts

  • in a clearly defined disease,
  • irrespective of whether insured persons continue to work, and
  • even when patients recover completely.

Compared to occupational disability insurance, insured persons do not receive a monthly pension, but a one-off payment. They determine their height individually before signing the contract.


dread disease krankheiten


What kind of diseases does Dread Disease Insurance cover?

There are comparatively few insurers who offer dread disease insurance. These include Canada Life, Zurich Life, Prisma Life, Nuremberg, Gothaer and the Bavarian. They have between 38 and 66 serious illnesses. The most important ones are cancer, heart attack, stroke and multiple sclerosis.

providers Number of insured illnesses
Canada Life 46
Zurich Life 66
Prisma Life 46
Nuremberger 50
Gothaer 50
The Bavarian 38

Depending on the provider, insured persons are protected even if they fall ill with dementia, Alzheimer’s, Parkinson’s or a brain tumor. If the protection against a specific illness is particularly important, you should carefully check the different offers for the severely ill health insurance in advance.

Is dread disease insurance useful?

The dread disease insurance offers some advantages, but also disadvantages. As a general rule, if you are interested in taking out occupational disability insurance, this should be your first choice. It is the only insurance that protects comprehensively against the financial consequences of those inactive working for health reasons. Serious illness insurance covers only a small part of the causes that make them unable to work. Why this is so, is due to a disadvantage of insurance.


  • Mental illness and skeletal disorders such as a herniated disc are not secured.
  • Upon conclusion of the contract, a health examination is necessary.
  • The sum insured should be sufficient for the rest of the working life. However, a high sum makes dread disease insurance expensive.


  • The benefit claim is usually clearly defined.
  • Insured people receive money regardless of whether they can still work or recover fully.
  • Children may be insured free of charge.
  • Persons with mental illness who do not receive occupational disability insurance have the option of having a minimum level of financial protection with Dread Disease Insurance.

Possible pitfalls of dread disease insurance

Before anyone decides to buy dread disease insurance, it is important to look at the key aspects of insurance coverage. You should pay particular attention to the following points:

Definition of the disease: Depending on the disease, some insurers pay only when it has reached a certain stage. If the insurance conditions are incomprehensible in this regard, it is advisable to have them explained in a layman’s terms.

Waiting period from diagnosis: Sometimes the insurers only provide some time after diagnosis, for example after four weeks. If a quick payout is important, you should choose a provider with a short waiting period.

Waiting times: After conclusion of the contract, the protection is not always immediate. Depending on the provider, waiting times are provided. If insured persons fall ill during this time, they will not receive benefits. Accordingly, it is important to arrange the dread disease insurance early.

Costs and current test winners in dread disease insurance

Unlike occupational disability insurance, dread disease insurance is rarely put to the test. For example, the last test of Stiftung Warentest took place in the summer of 2016. Seven offers with a capital benefit of 300,000 euros were audited for the professional groups of business administration graduates and industrial mechanics. The study shows that the annual fee can fluctuate significantly. It varies depending on the tariff and occupational group between 1,006 euros and 2,299 euros.

Differences can also be found in the special services. Thus, not every insurer grants early benefits if the insured’s life expectancy is less than twelve months due to the diagnosis. In addition, only a few vendors accept the contributions if their client becomes disabled.

Although the choice of dread disease insurance is significantly smaller than that of occupational disability insurance, those interested should check the tariffs in detail. Insurers in particular differ greatly in terms of additional benefits in particular. This is where the support of an insurance expert pays off who knows the specifics of the providers. With it, the insurance cover can be tailored to 100 percent to personal wishes.