Disability Cover

This can be divided into two types:

  • Temporary disability: This pays out as an income to replace your monthly salary when you cannot work because of an injury or illness. A temporary income protection has a waiting period that could range from 7 days to 12 months, meaning you can only claim once this waiting period has passed. The benefit pays out according to the injury or illness, and can be paid for up to 24 or 36 months. Your income is crucial to insure, especially if you are single, the sole provider of your family, or if you have no financial support system.
  • Permanent disability: This pays out when you are permanently disabled or unable to perform your job due to injury or illness. This benefit can pay out as an income – called a permanent disability income protector – or as a lump sum. When it is paid as an income, the income will pay out until you reach the retirement age you selected when you applied for the policy. We usually recommend a combination of lump sum and income protection.

With some companies, you can still opt for the lump sum, even if it is income protection. This is a good thing, because if you have been diagnosed with Stage 4 cancer, and you have a short life expectancy, you can opt for the full amount. However, if you have, for instance, broken your back and have a long life expectancy, you can opt to take the payment as an income.