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Millions of South Africans live with disability, many of them young adults without savings and investments to protect against the financial impact of disability. While no one likes to think about disability, the numbers prove that it is a very real risk for many South Africans. If you want to protect against the financial risk of disability the answer lies in a disability insurance policy, which pays out a tax-free lump sum if you are totally and permanently disabled and unable to work. In this article, we will take a closer look at who needs disability cover, how it works, and what factors to consider when selecting a policy.
What does a disability policy cover?
There are many benefits of disability insurance. Your policy pay-out could replace lost income and help pay off your debt, giving you and your family the financial protection you need against disability. Your disability cover policy will also help cover the following expenses to help you live with your disability:
- Treatments like rehabilitation or physical therapy
- Home modifications like ramps, wider doorway or grab bars
- Modifications to vehicles or equipment like wheelchairs or mobility scooters
- Assistance with daily activities such as bathing, dressing and grooming
Who needs disability insurance?
If you have dependants that rely on your income to cover living expenses and maintain their standard of living, then a disability policy can help provide financial support and ensure that they are taken care of. For some people the risk of disability is higher than others. For example, individuals who work in physically demanding or hazardous jobs or those with pre-existing medical conditions.
Young adults without dependants also need disability insurance. A policy pay-out can help replace lost income and adapt your life and home to your disability. You could also work with a financial advisor to invest the lump sum to generate a regular income.
Everyone is vulnerable to disability and mitigating the risks with a disability cover policy is a responsible choice.
Who is eligible for disability insurance?
Not everybody qualifies for disability cover. Factors such as your health, lifestyle, and type of cover will be taken into account when you apply for cover. Furthermore, to purchase 1Life Disability Insurance you have to be between the ages of 18 and 59.
Top tip: Read your policy schedule and take note of any specific exclusions. These are conditions under which your claim might be rejected, for example if you take part in hazardous sports or other activities. General exclusions are also listed in your policy book, for example claims might be rejected if you are injured while taking part in a criminal activity or breaking the law, for example driving under the influence of alcohol.
How does disability cover work?
As a policyholder you pay your monthly premiums per your policy schedule. Your monthly premium will be based on your age, gender, health and occupation. If you are totally and permanently disabled by accident or illness and your claim is approved your policy will pay-out depending on the amount and type of cover bought. Your pay-out is tax free and you can use the pay-out to cover any expenses.
Top tip: Learn more about the difference between 1Life Occupation-based Disablement cover, which pays out the full amount if you are totally and permanently disabled and can't work, and Event-based Disablement which covers certain events, as detailed in your policy schedule and policy book, and pays out a percentage of your cover.
Guidelines for choosing the right disability policy
When it comes to choosing the right policy, there are several things to consider;
- How much cover you can afford
- The amount of cover you need
- When and by how much your premiums will increase
- What waiting periods apply to your policy
- How to claim on your policy, how long it takes for claims to pay out and what time limits there are to submit a claim
- What medical exams you will need to complete
How much disability cover do I need?
Talk to your financial adviser about how much cover you might need and what you can afford to pay monthly in premiums. Don’t be discouraged if you can only afford a small amount of cover. You can always increase your sum assured as you earn more and are able to afford higher monthly premiums. Ready to get started? Get a quote for 1Life Disability Insurance from a financial adviser or one of our skilled consultants.
Top tip: Dread disease cover protects against dread diseases such as cancer, cardiovascular diseases like heart attacks and strokes and Alzheimers. Ask for a dread disease cover quote when you get your disability cover quote.
Choose 1Life Disablement Cover
1Life Disability Insurance pays out a tax-free lump sum of between R50 000 and R10 million if you are totally and permanently disabled and unable to work. There are no waiting period for accidental disablement. The pay-out will depend on the amount and type of cover you buy. No medical exams are required, just an HIV saliva swab. Plus, your premiums won't increase for the first 12 months!
1Life Disability Insurance claims may be paid out within 10 working days once our claims team has finalised the claims assessment! It is important to note that you must claim within three months of the event that caused your dread disease or disablement.
Want to find out more? Our disability insurance FAQs have all the answers you need.
The views and opinions expressed in this article are those of the authors and do not necessarily represent or reflect the views of 1Life Insurance or its employees.
We answer your questions about our products and services!
What types of jobs or individuals are at a higher risk of disability?
Individuals who work in physically demanding or hazardous occupations, such as construction, mining, or emergency services, face a higher risk of disability due to workplace accidents or injuries.
How does disability cover differ for occupation-based disablement and event-based disablement?
1Life Disability Insurance pays out in the event of disablement. You can choose between two types of personal disability insurance. Occupation-based Disablement, also called Lump Sum Disablement, which pays out the full amount if you are permanently disabled and cannot work or do a similar occupation. Event-based Disablement pays out a percentage of your cover amount for disability, according to the tables in your policy book, even if you are still able to work.
What guidelines should I follow when choosing the right disability policy?
When it comes to choosing the right policy, there are several things to consider;
- How much cover you can afford
- The amount of cover you need
- When and by how much your premiums will increase
- What waiting periods apply to your policy
- How to claim on your policy, how long it takes for claims to pay out and what time limits there are to submit a claim
- What medical exams you will need to complete
What sets 1Life Disability Insurance apart from others in the market?
1Life Disability Insurance pays out a tax-free lump sum up to R10 million if you are totally and permanently disabled and unable to work. There are no waiting periods for accidental disablement. The pay-out will depend on the amount and type of cover you buy. Just complete some underwriting questions and an HIV saliva swab. Plus, your premiums won't increase for the first 12 months!
Is disability insurance only for those with dangerous occupations?
If you have dependents that rely on your income to cover living expenses and maintain their standard of living, then a disability policy can help provide financial support and ensure that they are taken care of. For some people the risk of disability is higher than others. For example, individuals who work in physically demanding or hazardous jobs or those with pre-existing medical conditions.
Young adults without dependants also need disability insurance. A policy pay-out can help replace lost income and adapt your life and home to your disability. You could also work with a financial advisor to invest the lump sum to generate a regular income.
Everyone is vulnerable to disability and mitigating the risks with a disability cover policy is a responsible choice.
What is the time frame for submitting a claim for disability insurance?
The time frame is within three months of the event that caused your disablement.