Disability Cover
What is disability insurance?
Disability insurance gives you the assurance against the loss
of income should an unforeseen event happen that might cause
you to be permanently unable to work or earn an income.
Example:
If you become disabled to do your occupation or an alternative
occupation, then you are unable to earn an income. When you
are unable to earn an income then you won’t be able
to afford your lifestyle expenses.
Thus you might loose those things most valuable to you like
your home, car, and savings as well as paying off your debt’s,
and your family and dependants will have to work to support
you and you will then become dependent on them.
If you are the main bread winner and have a bigger income
then your spouse, it will be impossible to keep your heads
above the water should you become disabled.
Why disability insurance
Depending on the duties of your occupation you might not be
able to continue working as you did before.
To protect yourself and those dependent on you, from a loss
of income and to maintain your lifestyle as it was before.
You can only get disability cover till the age of 65 or 75
You must insure your self against Occupational disability,
Functional disability, Physical impairment.
How much is enough disability insurance?
Depending on your current occupation and life style you will
need a capital amount set aside for emergency’s, we
call this 27/7 money available at any time when needed; and
an income amount to provide you with an monthly income of
at least 75% of you’re your highest paid salary. The
yearly income must also increase according or above inflation
so that you will not run short on your buying power over your
disabled years.
A good way to do this is to invest the claims money into
an income product that will give you enough capital growth
to draw an income from for the amount of years until; your
retirement or pension savings provide an income for the rest
of your life span.
Disability events:
The following listed events can cause a permanent disability
and some of them are on top of the life assurance companies
claim list.
The loss of any two or combination of both, Fingers, Hands,
Arms, Legs, Feet, Hearing, eyes, sight, speech, upper body
or lower body function.
Major organ disabilities:
| Cardiovascular system; arrhythmia; peripheral
arterial disease; peripheral venous disease; hypertension;
red blood cell disorders; white bloodcell disorders; clotting
disorders; respiratory system; gastro intestinal tract
and liver and biliary disease; anorectal impairment; impairment
ofthe bladder; renal system; endocrine system; Diabetes
mellitus type 1 and 2; impairment of consciousness and
awareness; psychiatric condition; epilepsy; dementia;
aphasia; hearing; visual; speech; facial disorders and/or
disfigurement |
Cranial nerve Vll (Facial
verve); Cranial nerve Vlll (Vestibulocochlear nerve);
Cranial nerves lX, X, Xll; neurological impairment of
respiration; cancer; chronic back and neck conditions;paraplegia;
quadriplegia; hemiplegia; diplegia; locomotor system;
major burns and activities of daily living. |
Statistics on disability as supplied by www.statssa.gov.za
Affordable disability insurance:
Finding affordable disability cover can be very hard, it all
depends on what you want insured. To determine what premium
you will pay depends on how much cover you need, your gender,
age, occupation, current health status, personal risk profile,
what the waiting period on the claim will be and for how long
you want the cover for. You can only insure yourself against
disability while you are in your working years and some benefits
insure you for life.
Insurance companies under write different from others, they
have their own rates on disability cover.
Also know that where you have an existing injury, the company
will load your premium or totally exclude that injured part
of your body.
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