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Covid-19 can severely disable you and as a result, your income earning potential may stop!

  1. What will you do if you cannot earn a living?
  2. Whom will you have to rely on?
  3. And how will you feel for the rest of your life?

Here is advice about a low premium, income protection insurance policy, that will protect your income-earning ability!


HOW TO PROTECT YOUR INCOME AGAINST THE EFFECTS OF COVID-19

coronavirus
This pandemic has really turned our lives around in such a short time! It has heightened our thinking around our mortality quite substantially.
It is difficult to believe anything we see, are told or read.
BUT, one thing remains unchanged … and that is that the value that Life Insurance has never been more important than today!
Especially if you have others who rely upon you for a living.

Now is Really the best time to think about Your Life, Disability and Dread Disease Insurance.

Corona-virus has made disability insurance even more important today!

Everything we read or hear about these days is “Covid” related. Yet, the traditional risks of life and the reasons for taking out life insurance are still there! Yes, Covid-19 has increased the risk of many of those reasons to seriously affect us and to do so extremely quickly. The “co-morbidities” we are told about – diabetes, obesity, high blood pressure and so on are now something we can no longer ignore.

Your medical aid should cover your medical costs, but it will not replace your lost income!

The risk of death, disability and dread disease is something you cannot ignore! Both for yourself and those you love.


LIFE AND DISABILITY COVER.

Life cover is the ONLY way to immediately provide a substantial amount of money if you either pass away, or become disabled and cannot continue to earn a living.

It is the only way to protect your and your family’s financial future at a low cost and immediately!
(And to confirm, if you have an existing life cover policy in place, you will be covered in the event of death as a result of the corona-virus, and the death claim would follow the normal administrative process.)

Planning for your future is now more important than ever. The pandemic has re-defined the way we think about life insurance.
As we have seen, life can change so quickly and with very adverse financial consequences for you.

A life policy may not protect your business, but it sure will protect your income-earning protection – in both the short and long term!
But, you must have cover in place, so if you do not have life and disability insurance, or are concerned about what you do have, then NOW is the time to sort it out!
Remember, nasty things can happen fast these days.


WHAT YOU MUST DO NOW …

The four greatest risks facing us are temporary illness or injury and permanent disability, suffering from a dread disease and death – with injury and temporary illness being the greatest risk preventing us from earning an income.

income protection insurance
Suffering from a long-term sickness or accident will prevent you from earning an income, financially crippling you and making you dependent upon others.

Over the last months, we have all too clearly seen how important earning an income is. Everything you have and desire can be reduced to one basic thing … what money you earn. That amount determines what you have and the life you and your family live.
Without that income, everything stops!

So, it makes utmost sense that you should protect that income as best you can.
Both if you pass away or if you are disabled, that income must continue!


Your goals, both short and long-term are unique to you.
So, you need a product that recognises that from the start – matching your needs.
It must be real, sustainable, cost-efficient and have no wasted premiums!
It must offer comprehensive cover, because you cannot choose a disability.
You can only choose the best product to cover that risk!

HOW CAN YOU ADDRESS THIS VERY REAL THREAT TO YOUR FINANCIAL FUTURE?

Disability Income Protection insurance provides for an income if you are unable to continue working and comes in many forms, so it's important to understand exactly what you might be buying.
While you want value for money, make sure you fully understand the benefits of each policy before you take one out!

Disability insurance will provide you with an income if you are disabled and are unable to continue working.

It comes in 2 forms;

1. LUMP SUM or Capital disability - this pays a tax-free amount in the event of you being medically impaired to a degree that you are not able to continue working - permanently.
A claim is assessed on the severity of your medical impairment – no matter what work you do to generate an income.
So you are covered in the case of a “lesser/temporary” disability.

The liability of providing an income into the future lies with you and how best you invest the claim proceeds.
This is the lowest cost form of disability insurance when added to a life insurance policy.

2. INCOME PROTECTION as a Monthly payment - this pays you a regular income should you experience a loss of income upon becoming fully or partially unable to follow your nominated occupation, due to injury or illness as indicated in the policy schedule.
It pays an income until the earlier of your having recovered sufficiently from the temporary disability to return to work, or until you reach your chosen maturity date.

The cost is higher than capital disability, but it is a far better, more comprehensive form of cover!

Lump SumIncome Replacement
You carry the risk of investing a lump sum of money and creating an income.Claim payment will closely match your income when claiming and into the future.
You have to account for investment returns, inflation and make your money last.Payments keep pace with inflation. You have no investment return concerns.
Only permanent disability.Temporary Disability is covered and most claims are for this type of disability.
Has nothing to do with loss of income, so can pay even if you are disabled and can still work.Only pays on loss of income.
Used mainly to settle debts with lump sum payments.Monthly income only.
Continues after your death to support your family.Ceases with death.

The ideal insurance is to have a combination of both products – if you can afford it!
It is highly recommended you consider a mix of both types of insurance and I can offer you a Comprehensive Impairment, total and irreversible Occupational Disability and a monthly Income Benefit - all in one very affordable policy!

That way, if you suffer a disability, you would claim your capital disability lump sum and invest that for your pension, ensuring you will have a pension.
Your income protection claim will ensure your monthly income continues to your retirement age, allowing you to keep your living standard and all your investment/pension plan monthly contributions going.


WHAT DEFINES A DISABILITY?

income protection
There are 3 forms of disability cover, based on the type of occupation you do - own occupation, own or similar occupation and total disability and impairment. It is important that you understand what threat each definition holds for you.
Occupational definitions can range from being unable to perform your specific occupation, for example, as a neurosurgeon, to being unable to perform any occupation at all. This is vital to understand as many companies define disability differently.

  • Own occupational disability arises from bodily injury, illness, disease or surgical operation resulting in you being incapable of performing your current occupation’s duties and normally applies to professionals.
    It takes into account your education, previous training, abilities and work experience.
  • Own/similar occupational disability defined as the total and irreversible (not correctable by treatment or operation) inability (due to sickness, injury, disease, illness or surgical operation), of you to perform your own occupation or or similar job that you could reasonably be expected to do.
Because Own /similar occupation has a much broader definition of what an occupation is , it has a lower premium. It is not as precise when it comes to claim events as own occupation disability.

  • Any occupation is really cover if you cannot work at all. If you are disabled but can still perform some other job, albeit a menial one, you will not qualify for a claim.

This is the most difficult to claim on and has the lowest cost.
Please ensure that you are correctly insured for the job you do.

PERMANENT AND TEMPORARY DISABILITY EVENTS.

A disability can be permanent or temporary, when you recover you may be able to return to work. You need to insure for both cases.

Permanent Disability – cover from date of the disability until your nominated retirement age, for example age 60 to 70 or for life.
The vast majority of disabilities never become permanent so temporary disability is vital.

Temporary disability - according to research, you are nine times more likely to have a temporary disability than to have your car stolen or be hijacked in South Africa and 70% of people will experience at least one injury or illness during their working lives that will prevent them from earning an income. That is no small risk you face!
A temporary disability provides a monthly payout for between 0 and 24 months and will stop as soon as you recover.


WHAT IS THE DIFFERENCE BETWEEN A DISABILITY AND IMPAIRMENT?

protect your income from a disability
Disability implies the inability to perform an occupation in the event of an illness or accident.
Disability insurance aims to compensate you for this future loss of income.

On the other hand, an impairment implies a physical or functional disorder - such as the loss of a limb - that does not necessarily stop you from earning an income.

Impairment benefits are just as important as disability benefits because they provide cover against unexpected expenses that you may face living with a such a disability.
An example would be a computer programmer who suffers partial paralysis. You could still work as a programmer, but may need a wheelchair and cannot drive a car?

This kind of cover is equally as important for those who don't have dependents because it enables them to remain financially independent, maintaining their dignity and self-sufficiency. It is very difficult for those with physically demanding occupations - such as professional athletes, builders and plumbers - to get disability cover, because they present an above average risk to insurers.

This is where impairment benefits are important because they allow clients to insure their lifestyle and are linked to the ability to perform Daily Activities rather than the ability to perform a specific occupation.

Partial Disability - Approximately 30% of disability claims relate to partial disability events, so you may want to ensure that your policy covers you for partial disability, where you are able to perform some, but not all, of your normal duties.

Partial disability is a notoriously difficult are to claim on, so you must get a policy that makes specific provisions for partial disability.

If you cannot do some of the work you need to in your own occupation, or are not able to work for a full day, you should be able to claim.
For example, your GP recommends light duty work when recovering from treatment or awaiting surgery.

Partial disability can become a permanent disability. If you suffer from a long-term moderate heart impairment or chronic back pain, that may lead to a loss of income.

It is therefore very important that you buy a product that fully covers these risks!

HOW DO YOU PROTECT YOURSELF FROM AN ILLNESS OR ACCIDENT PREVENTING YOU FROM EARNING AN INCOME?

(Or how to build your own financial fortress!)

It is well known that the risk of dying as a result of contracting the Corona-virus is extremely low for most people under the age of 60. However, the risk of your income-earning potential being negatively affected is far higher!
Suffering from COVID-19 will mean not working and even hospitalisation for quite some time.
And like with other causes of a disability (which have not “gone away”), if you are sick and unable to work, income protection is vital!

proitect income from accident or disability

Income protection has more advantages than traditional lump-sum disability insurance because it matches your needs more closely than a lump sum benefit can ever do.
  • How accurately can you predict your income needs into the future and then capitalise that into a lump sum amount to insure for today?
    It is an almost impossible task to account for all the future risk factors we face, given how quickly and unexpectedly our world changed over the last 3 years!
  • It guarantees you a monthly income, from the risk of investing, inflation and time.

  • It gives you certainty as to an income in the future.
    How certain are you that a lump sum will last as long as you may need it? What if your investments fail to return the amount you need to replace your income? Even the most prudent investor cannot guarantee an income into the future!
  • It covers you for permanent and temporary disability – so vital with Covid-19. A lump sum only covers permanent disability.

WHAT TO CONSIDER WHEN BUYING INCOME PROTECTION?

Because almost everything we enjoy in life is as a result of what we earn, if that income stops – either permanently or temporarily – we will be in serious financial trouble! This is even more of a threat these days as the effect of Covid-19 has resulted in many people running their own businesses, after losing formal employment when companies have closed.

Suffer an illness or accident that prevents that income from flowing and you and your family can lose everything!
That includes the ability to afford the best medical treatment, the best education for your children and your pension savings!

Income Protection factors to be aware of.

  1. It must protect you when you are permanently or temporarily (for between 0 and 24 months) unable to work as a result of an illness or accident.
  2. It must protect you if you cannot work in your own occupation. Not only if you’re unable to do any kind of work at all. It must cover certain physical functions. It should consider the importance of the body part you can no longer use, bearing in mind that the impairment must be permanent.
  3. It must protect you until you retire, are able to return to work or upon death – whatever comes first.
  4. It must pay enough to sustain the lifestyles you have become accustomed to.
  5. It must cover you for illness, accidents, impairments and partial disability - where you are able to perform some, but not all, of your normal duties that will affect your quality of life and help with the cost of adjusting to your new lifestyle, such as installing a wheelchair ramp or buying appliances not covered by your medical aid.
  6. You need to accurately insure for the level of income you wish to protect, today and into the future. You need to consider things like your monthly living expenses, bond and vehicle repayments, as well as how much you would need to put away each month to fund for your retirement.
  7. Make sure you understand how the policy protects you. Make sure what is required for a Covid-19 claim.

Waiting period

You have a choice of waiting periods to choose from.
These range from 7-days, 1-month, 3-months and 2-years, depending on your occupation and your financial needs.
The longer the waiting period, the lower your premium.

If you have funds to see you through a waiting period, then choose a plan with a longer waiting that you are comfortable with.
It is more cost-effective.

income protection

Ask yourself:

1. Why do I need this Income protection insurance cover?

Our highest risks are disability (temporary or permanent), death and suffering a dread disease.
How you structure your cover depends on what you need now.

  • How much do you need to settle bigger debts like a bond or car?
  • What do you need as a monthly income to meet your current living expenses until you retire and use your pension money?

Remember, everything you have now is as a result of how much you earn.
So, protecting your income is key!

Your greatest financial asset is your ability to earn an income, so it is important is protect your future pay cheques until your projected retirement date.

And while you’re more likely to suffer an illness or injury the closer you get to your retirement; your financial exposure is highest in your thirties and forties when you’ve got more pay cheques to cover and a higher outstanding debt on your home loan.


2. What can I afford to pay?

It is simple to say “pay what you can comfortably afford.” But you must budget something for this vital cover.

If you are young and single, you must insure against a disability stopping you from earning an income. For without it, who will have to support you for the rest of your life? And how will you feel having to always rely on others?
If you cannot insure your full income at least try cover 30% to 50% of it. Just start somewhere!

As you grow and maybe get married or have a family, you need to look at what you and they will need if you lose your ability to earn an income. The house bond, children’s education costs, added medical expenses and so on.

quote I want a quote.

Your first step is to get an insurance quote, so you know what premiums you face.
No two quotes are the same as it is based on your unique personal details and situation.

Use a qualified broker like myself, as rates do change between certain life insurance companies and you can get a range of quotes from different providers.
You can then “design” the cover to suit your needs and wants. You can add benefits and change amounts if you are not happy with what you are shown. Remember, a quote is not a contract!

Be specific as to what you want and be aware some brokers may try and sell you an inferior product (because they don’t know better- are a ‘tied agent’ to a specific insurance company - or because they can make the premium look cheaper with some fancy footwork).
Rather take out less cover with a responsible product, than more cover for a low premium!


3. So, who do I choose to join?

Look for a company who offer innovative, easy to understand products.
A company that is up-to-date with the times.
A company that communicates in simple, easy to understand language.
A company that is growing and soon will be amongst the leading life insurance companies in SA.

The best policy is one with no “fine print!”
It is a transparent product that hides nothing, has no wasted benefits and gives you exactly what you need.

Income protection is an insurance that is constantly evolving. It is part of an extremely competitive market where products are constantly being enhanced and upgraded.

Because different insurers have different product “bells and whistles” to gain a marketing edge, it is extremely difficult to find a “like-for-like” comparison.

You need an experienced, independent advisor who will help you determine the right amount of cover, the right waiting period and the right term for your individual needs.
Someone to trust leading you through these options.

Please make sure that if a disability happens to you, you and your family’s financial future is guaranteed.
Make contact with me TODAY!!


protect your incomeFREE REPORT! Still not sure if you need Insurance?

For a limited period I will send you the FREE REPORT - WHY YOU NEED DISABILITY INSURANCE.

This unique report will;

Why would I give you this report for free?

I have been in the insurance business for over 20 years and have seen the tremendous benefit that disability cover provides for people who have lost their ability to earn an income.
I have seen the huge difference that money has made to the lives of those affected.

It is possibly more important than life insurance.

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peter pyburn brokerpeter pyburn

Last update:July 13, 2021

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