Disability insurance provides cover by replacing your income in the event that you are unable to work due to an accident or illness, either in your current occupation or a similar one. The monthly premiums you pay depend on the available benefits for individual coverage, the desired insurance amount, and your personal risk profile. Typically, disability insurance offers a lump sum payment to beneficiaries. If your policy pays out a lump sum, it is advisable to invest some funds to ensure long-term financial security.
Key points to bear in mind
- Complete honesty and disclosure of all relevant information is important when signing up for an insurance policy.
- Any changes in your circumstances, such as transitioning to a higher-risk job or starting to smoke, should be promptly communicated to the insurance company.
- Pay your premiums on time. If your policy lapses, you won't have cover. Life and disability insurance are intended to safeguard you and your family against income loss, so don't end up in a situation where insurance fails to pay out because of lapsed payments.
- Keep your beneficiaries up to date, as changes in your circumstances may mean you want to change your beneficiaries (e.g. having more children).
Your ability to earn is your greatest asset - protect it
Think about it: everything you provide for your family flows from your ability to work. Disability insurance makes sure that if life throws you a curveball, your salary doesn't disappear along with your health.
The admin side of things is straightforward - be honest when you sign up, keep your details current, and pay your premiums on time. Do those three things, and your cover will be there when you need it most. You've worked hard to build the life that you now have. Let's make sure nothing takes that away from you.
Simply Financial Services (Pty) Ltd is a registered financial services provider (FSP 47146). T&Cs online.