Category Archives: family

Disability Cover Vital for Breadwinners

Disability insurance is arguably one of those difficult areas of life cover. In fact, disability cover accounts for the most complaints received by the life and disability cover ombudsman.

What is Disability Cover?

If you wouldn’t be able to go without an income for an extended amount of time should you fall ill or be injured, you need disability cover.

Nobody is immune to serious illness or accidents. If you find yourself unable to work for an extended period of time, you’re going to run into financial problems.

A disability isn’t an older person’s problem. And it’s not only seniors who need disability insurance cover. Disability is the inability to work due to ill-health or a mental condition. And disability cover pays out an income or a lump sum when you can’t work due to one of these Disability Coverreasons. Life and disability insurance will essentially cover you and your dependents.

Can I get Disability Cover Without Life Cover?

Unless you have dependants, you might not need to insure yourself against death. But every working person needs disability cover from the day you start working. What happens should you encounter a disability the first day on the job?

Disability Cover and Your Spouse

If you’re married and your partner doesn’t work or doesn’t make enough to support you both, you’re going to need cover.

The amount of disability cover you need is going to vary depending on your changing circumstances through your working career.

A lot of people will have disability cover via schemes that their employers are part of. These are often part of retirement funds or disability insurance added onto life insurance.

Disability cover is highly complex. There are a lot of misunderstandings when it comes to what is covered, limitations and definitions. This often creates a technical minefield.

Some Life Insurance Providers Who Can Help

Many of the insurance providers in SA, such as Discovery Life Insurance and Metropolitan life can help with disability cover. As can Santam and Old Mutual. Discovery disability cover offers comprehensive cover in the event of not being able to work for extended period of time due to accident or illness.

More About Disability Cover

A lot of these policies don’t come with a commitment to pay out for the rest of your life. The amounts paid out can vary too. It’s for this reason that many a dispute arises and fraudulent claims too. So be sure to understand your disability cover policy, the term and conditions and of course the fine print.

Disability Insurance Quote Online

To get disability and life cover insurance quotes online, simply fill in the form on this page and click Submit. One of our insurance experts will be in touch soon to devise the right disability cover plan for you and your dependants.

Why an Income Protection Plan?

Over decades, a lot of South Africans have had to reply on the government for financial support should they retire or become disabled or couldn’t carry on working due to serious illness. There just hasn’t been much income protection. There’s simply been poor planning and lack of knowledge on part of the public. So it’s time to understand just how important an income protection plan is.

What is Income Protection?

Have you heard of an income protection plan?

First of all, if you receive monthly pay outs on your income protection cover plan, and not lump sum pay outs, you can enjoy certain tax benefits. Essentially, SARS lets you claim all your premiums back from your income protection policy. Those premiums go towards protecting your wages or salary should you become temporarily or permanently disabled.

Income Protection Insurance

Income Protection PlanAn income protection plan is an inexpensive way of protecting your salary. Too many people don’t realise this and take out expensive benefits on risk cover. But they never claims back from the income protection plan when it comes to doing tax returns.

Do check your income protection policies and chat to a financial advisor if you think you have such a benefit. If you don’t have a salary protection plan right now, it’s a good idea to take one out. After all, it’s self-funding.

Is an Income Protection Plan the Same as Salary Protection Insurance?

Let’s take a look at an example of income protection insurance South Africa.

Take Mr Smith and his income protection plan. He started paying a monthly premium of R100 to protect his salary of R10 000. Come the end of the tax year, Mr Smith has contributed R1 200. So he gets hold of his financial advisor, or calls his insurance company or even downloads his tax certificate to send to SARS. SARS will then let him claim his income protection premiums in full when he files his SARS tax return. That’s how an income protection plan can benefit you.

Income Protection Plans

However, effective 1 March 2015, there will be changes to this tax deduction. You won’t be able to claim income protection retrenchment premiums on the SARS tax return.

But that’s no reason to go cancelling your income protection plan. You can still get the fully insured amount without the worry of being taxed on the benefit that is paid to you. At present, life cover premiums for an income protection plan are deductible, but the insured benefit is still taxed in SA.

Is Income Protection Long Term or Short Term Insurance?

An income protection plan from the likes of Frank income protection and the Liberty income protection plan, are short term insurance solutions, with long term benefits.

Can you afford to be without an income protection plan South Africa?

To get your income protection plan quote today, fill in the form on this page and submit it.

* Here’s a YouTube video about income protection planning