DISABILITY COVER
Should you become permanently disabled
Physical disability generally occurs unexpectedly, in many ways and can have vastly different effects on your ability to conduct a “normal” life or to earn any form of income.
Should you be deemed to be permanently physically disabled, a lump sum or monthly income benefit will become payable.
It is important to consider your loss of income and any additional medical and other expenses that may be incurred as a result.
YOUR SOLUTIONS
What are your chances?
Types of disability classification
| CLASSIFICATION | DEFINITION |
|---|---|
| Own Occupation | If you cannot perform the job you are currently doing (generally restricted to professionals). |
| Own or Similar Occupation | If you are unable to do your current or similar job that you could reasonably be expected to do based on the required tasks and your capabilities. |
| Any Occupation | If you cannot do any job at all, no matter what the job entails. |
| Functional impairment | Is also a permanent disability where there is a specific outcome and upon which a lump sum is payable based on the severity thereof. |
Which option is best for you?
| LUMP SUM | MONTHLY INCOME | |
|---|---|---|
| Overview | Payment will be made once the life assurer is satisfied that the condition is permanent. | Payable after a specified waiting period and payable to a specific age or for whole of life. |
| Advantages |
· Ideal for specific needs to settle debt, pay medical costs or make certain lifestyle changes · Allows you to invest for an income · In the event of a short life expectancy, additional funds are available to provide a higher income · The cover is generally very affordable |
·Pays a regular income whilst you are unable to work. · Replaces the immediate loss of income. · Pays due to sickness, injury, or disability. · Multiple claims are allowed. · Cover is for both temporary and permanent conditions. · Can be extended beyond age 65. |
| Disadvantages |
· The lump sum could be badly invested and run out or be used to purchase unnecessary / impulsive assets. · It is difficult to match the life expectancy and the lump sum amount. · There are fewer claimable events and it is more difficult to claim. · Multiple disability claims are not possible. · Cover generally ceases at age 65. |
· No lump sum to settle debt or other expenses. |
