Today, people have, at least, 5 different disability contracts to choose from. What follows is a very brief description of each.
Lump Sum Disability
A lump sum is paid to the client should the client prove that s/he is totally and completely unable to perform her/his job taking into account her/his education, training, experience and status. Only one claim per contract will be paid. If a person becomes disabled but the person is assessed to still be able to perform her/his job, the claim will NOT be paid out.
A person’s ability to perform the functions of daily living is the criterion that is assessed to determine whether a claim should be admitted. It is possible to have a percentage of the full sum assured paid, which allows for multiple claims to be made. This benefit has nothing to do with the insured’s occupation.
Should an insured person suffer the loss or the loss of the use of one or more limbs, sight in one or both eyes and/or hearing in one or both ears a claim will be admitted and the contracted percentage of the sum assured will be paid to the insured person. This benefit has nothing to do with the insured’s occupation.
A combination of all of the above benefits
Rather than a lump sum payout on proven total and permanent occupational disability, this benefit will pay out a monthly sum of money that is meant to replace the disabled person’s salary. The benefit ceases when the claimant reaches the age of 60/65/70 or whole of life. The maximum this benefit will pay out is up to 100% of your income. Waiting periods can be chosen to reduce premiums.
This is a temporary benefit that can be paid out if a person is ill or injured in the waiting period chosen. Waiting periods can range from 7 days to 90 days. If a person is off work for 7 days or longer and their waiting period chosen was 7 days, then a claim may be lodged and the benefit will be paid. This is a great benefit to ensure there is no loss of income for a temporary illness/disability. This benefit is paid out for a maximum of 24 months.
There are many Additional benefits that some insurance companies provide as an added incentive on an income protection policy, an example is a retrenchment benefit, child dread disease benefits, etc
This is a must have benefit for any person earning an income
Email or come and see us without delay to get disability or income protection cover.