Please explain the difference between accelerated and non accelerated dread disease?
Non-accelerated Dread Disease means that the dread disease benefit is not an accelerator of your life cover benefit. This means that a Dread Disease claim will not reduce the amount of life cover that you have after a claim payment is made. This could also be referred to as a standalone benefit which means that the premiums are not cross subsidised with the cheaper life cover premium and therefore can be quiet expensive. Accelerated Dread Disease on the other hand means that the dread disease benefit is directly linked to the life cover benefit. This means that any Severe Illness claim will not only reduce the amount of the Severe Illness Cover, but will also reduce the amount of life cover on the same policy. Due to the cross subsidisation of this benefit with the life cover benefit, it is cheaper than a non accelerated or standalone benefit.
