Home Page: peterpyburn.co.za

A severe disability or illness can prevent you from earning an income.

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!

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!
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.
And if you do not have a life and disability policy, or are worried that your current policy is insufficient, then NOW is the time to sort it out!
Remember, nasty things can happen extremely fast these days.

What you must do now

The greatest risks facing our and out loved one's financial futures are suffering a temporary illness or injury preventing us from earning an income, a dread disease, a disability. or death.

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

The pandemic has, all too clearly, shown 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.
Should you pass away or if you are disabled, that income must continue!

Your goals, both short and long-term are unique to you and you need an insurance product that that, from the start, protects them from life's unexpected threats. It must offer real benefits, be affordable and sustainable.
It must offer comprehensive cover, because you do not know the cause or extent of a possible future disability.
You can only choose the best product to cover that risk!

How can you address these very real threats to your financial future?

Disability Protection insurance provides a lump sum of money that you can invest for an income, if you are unable to continue working.
It has several options, so it's important to understand exactly what you are 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 the ability to earn an income if you are disabled and are unable to continue working.

It comes in 2 forms;

Lump Sum	Income 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.

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!

This 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?

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, and when you recover you may be able to return to work.
You need to insure for both permanent or temporaryDisability.

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?

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.

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.

Impairment cover is equally as important for those who don't have dependants 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, 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!)

The risk of dying is low for most people under the age of 60. However, the risk of your income-earning potential being negatively affected through a disability is far higher.

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!

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.

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 other 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.

Why You need 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!

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 Bond.

What Premium can You afford?

It is simple to say “pay what you can comfortably afford.”
But you must budget something for this vital cover.
If you cannot insure for your full income at least try cover 30% to 50% of it. Just start somewhere!

What is the cost?

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. Together we can “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!

Which Insurance Company 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.

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.

Make contact with me TODAY!!

Password:Name:

Email:

Tel:

Yes, I agree to receiving medical aid and insurance product marketing by electronic means.

083 655 2164

Medical aid pays healthcare costs.
What if a disability STOPS your income?

LinkedIn

Important Disclaimer:This content is for informational purposes only and does not constitute financial advice. Past performance is not indicative of future results.
Please speak to me before making any decisions.

By submitting an enquiry you agree to us collecting the information in the fields above. Please refer to our POPI Manual.
Your data will be processed according to the Protection of Personal Information Act (POPIA) guidelines

South African rights reserved.

Last update: September 7, 2025