Disability Cover

Life Cover Disability Cover Income Protector Functional Impairment Benefit Critical Illness Benefit Accident cover benefits

Definition and description of disability benefit

The Occupation Disability Benefit pays the benefit amount as a lump sum if: DISABILITY FOR REGULAR OCCUPATION - the insured life suffers a disability caused by a bodily injury or illness to such an extent that he is totally and permanently unable to perform the normal duties of his own occupation DISABILITY FOR REGULAR AND REASONABLE ALTERNATIVE OCCUPATION - the insured life suffers a disability caused by a bodily injury or illness to such an extent that he is totally and permanently unable to perform the normal duties of his own occupation or simalir occupation.

Disability cover also known as:

Disability has different names at different product providers. Some of the benefits are similar but there is not one that are exactly the same as another. Some of the names for disability cover at leading insurers for their products are: Own occupation disability benefit – total and partial payout levels: Comprehensive ADW Disability Benefit; Comprehensive Disability Benefit (own/similar ); Capital Disability (Comprehensive Plus); Absolute Protector; Functional impairment plus disability for regular and reasonable alternative occupation. Own occupation disability benefit – total payout levels only: Comprehensive Disability Benefit; Comprehensive Disability (Own) benefit; Capital Disability (Comprehensive Plus); Absolute Protector; Functional impairment plus disability for regular occupation Disability benefit for similar occupation – total and partial payout levels: Comprehensive ADW Disability Benefit; Comprehensive Disability Benefit (own/similar ); Capital Disability; Absolute Protector, and Functional impairment plus disability for regular and reasonable alternative occupation. Disability benefit for similar occupation – total payout levels only: ADW Disability Benefit; Disability (own/similar); Capital Disability (Core); Capital Disability; Occupational Disability Benefit; Comprehensive Disability Benefit: Disability for regular or reasonable alternative occupation The different names are very confusing? All the different benefits are classified as disability benefits but there is no two benefits with exactly the same definitions. It is very difficult to compare different providers solutions. The best approach would be to find a qualified and experienced financial advisor representing big brand product providers to compare and find the benefit that will best address your unique needs and circumstances. Disability benefit is used for: The disability benefit is a cost effective way of providing for occupational disability needs: Loss of income: Provides funds that can replace the income lost in the event that the insured life becomes unable to perform the duties of his own occupation. Financial security: Provides funds that may be used to ensure that the current standards of living of the insured life can be maintained. Debt protection: Provides funds that may be used to help pay off mortgages and other outstanding debts.

What should you consider when searching for disability benefit:

The price (premium) for disability benefit is different at the different providers for a very good reason! The reason being that the definition of the disability benefit for how what kind of benefit it is, when claims will be paid, how claims will be paid and many more important factors are different. A general rule of thumb is that you pay the price for what you get. Never assume that if the name of the benefit indicates that you will have a claim when you think you are disabled! Some of the more important factors to look at when you are searching for disability cover are: Description The disability benefit does not only differ between different providers but you get different descriptions and prices of the benefit at every single provider. Some disability benefits will pay when you are disabled to do your own occupation and other will pay when you are disabled to do your occupation or a similar occupation. Other benefits again will pay when you can not do specific functions of your daily tasks. Point being, don’t assume that you have a disability benefit that will pay when you expect it to pay just because the name of the benefit is ‘disability benefit’. Alarm bells should start ringing if the benefit are promoted on price only and not the important factors of the benefit as discussed here! Waiting periods For how long must you be ‘disabled’ before the benefit starts paying and if/when it starts paying out how will it pay? Will you receive a lump sum or will you receive a proportionate payout? How will a possible claim affect your other benefits on the policy? Exclusions Ensure that you know if there is exclusions and if so, what is the exclusions? Some cheaper forms of the disability benefit for example will exclude certain back conditions at some providers but you have the option to include these options at a price of course! Term It is important to note that disability benefit is not provided to enrich a person but only to replace an income that would otherwise been earned up to your retirement age. For this reason disability benefits are capped and you must still make provision for your retirement. Price If a disability benefit is included on a policy the proportionate part of the premium normally falls away when you reach the age that the benefit is not applicable anymore. (after retirement age) Some insurers however, to ensure an cheaper initial premium and thus attracting more business, price the benefit over the overall term of the policy, even after the benefit is not applicable anymore. Above mentioned factors to look at when searching for disability benefit is only a few of the more important factor to look at and will hopefully make you realise that you must not only look at the price of a policy but to be aware of the probability of a valid claim given the definitions of the disability benefit you are buying.

What to do to find a quality disability benefit!

The best solution would be not to be influenced by gimmicks of cheap policies and probable cash back’s, and to rather get advice from experienced qualified financial advisor representing big brand product providers, in your town. Advisors are trained to recognise abovementioned pitfalls and can find you solutions that will address your unique circumstances for true peace of mind.
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