There are several different kinds of Disability Insurance, with different benefit structures, and different definitions of what it means to be “disabled”. The most simple and cost effective kind of cover, which is what Simply offers, is also called Physical Impairment cover. It pays out on pre-defined injuries, regardless of whether these impact on your ability to work. For example, if you become paralysed, or blinded, the cover will pay out. You don’t need to be employed to be eligible for cover.
The benefit will be paid to you, and you can use the cash to replace your income, settle debts, and cover additional expenses you’re facing because of your disability.
The amount of cover you select (up to the maximum of R2 million for Family Cover, R400k for Domestic Cover, and R2 million for Group Cover) is paid if the insured person has suffered total, permanent and irreversible disability. This can mean loss of a body part, or the loss of use of a body part.
The benefit only covers very specific injuries or illnesses, it doesn’t cover everything that could affect your ability to work. Here is a list of what benefit is payable under the loss of (or loss of use of) the following:
- Both hands or both feet (at or above the ankle joint/at or above the wrist): 100% of cover
- One hand or one foot (at or above the ankle joint/at or above the wrist): 50% of cover
- One hand and one foot (at or above the ankle joint/at or above the wrist): 100% of cover
- Both eyes (permanent and irreversible loss of all vision with no light perception in both eyes): 100% of cover
- Speech (permanent and irreversible loss of ability to speak as a result of injury or disease to vocal cords or brain): 100% of cover
- 3rd degree burns >40% of body surface: 100% of cover
- 3rd degree burns 20-40% of body surface: 50% of cover
There is a 6 month deferred period from when this loss occurs before you are eligible for this benefit.