This is a very good question and one that I get on a fairly regular basis. Before I answer this question, I think it is important to note that you get two types of disability insurance cover. The type that pays out as a lump sum at claim stage (the insured benefit amount) and the type that pays out as a monthly income (better known as an income replacement policy). Lump sum disability insurance benefits are very popular in South Africa and in order to estimate what is an appropriate level of lump sum disability cover to take out in order to cover your salary, it’s suggested that the disability lump sum is converted into an equivalent monthly income. I am going to cover that little calculation later in the blog post for you. You see, we take out disability insurance to protect ourselves against the financial loss we would suffer if we became disabled and couldn’t work. No work means no income. No income equates to a financial loss and that is what we are insuring against. It’s therefore important to note that when taking out any disability insurance cover your income is what is used to determine the ...
LIFE INSURANCE
Why do you need life insurance? It's simple really. If you pass away you want your outstanding debts (like the mortgage on your house) settled. If you are the breadwinner in your family you also want your income replaced if you are no longer around to provide. Simply put, life insurance is taken out to settle liabilities and to replace lost income when you pass on.
Determining how much life cover you require is easy enough and we will help you with this crucial step before making any formal life insurance quote recommendations. Knowing what type of cover to chose and which provider to place your business with is not so easy and this is where you need some unbiased expert help. This is especially important when you are looking to take out additional benefits like disability cover and critical illness cover.
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