Disability Insurance (DI) in South Africa

Disability Insurance (DI) ensure that you have the answer to at least ONE of the 'what ifs' in life - it provides financial cover should you become physically disabled or unable to do your job.

Disability Insurance (DI)
provides financial cover in times of need

Why Disability Insurance:

Your health is priceless! Being able to work, gives us all the ability to earn an income, enjoy life and take care of our families. A sudden and severe illness causing an occupational or physical disablement (or impairment), will jeopardise your financial position and lifestyle. Regardless if the injury or illness is temporary or permanent, Disability Insurance cover (or Income Protection cover) will ensure your financial security.

Disability Insurance, also known as Disability Income Insurance or Income Protection, is a form of insurance cover that insures the beneficiary's earned income against the risk that a disability creates – a barrier for a worker to complete the core functions of their work.

Disability Insurance cover will give the insured a specified lump sum or a monthly income, so that you can live comfortably, even if you can no longer work.

Impairment versus Disability:  It is also important to distinguish between ‘impairment’ and ‘disability’. Normally when you are impaired, you would still be in a position to earn some sort of an income. However, this won’t be the case with permanent disability.

Specialist Occupations:  If you are in a Specialist Occupation type, then rather consider taking cover for “Own Occupation Disability”, instead of “Occupational Disability”. In this instance through the disability, you would be covered if you are no longer able to do your 'current' type of job. If you selected occupational disability, then you may not be paid out, if you are in a position to do 'another' type of job that woud provide an income.

There are many options available when it comes to disability insurance and income protection plans. These options may be confusing – and also time consuming to study the various disability insurance options.

DIB Solutions (Pty) Ltd have partnered with reputable underwriters and various insurance companies in order to assist our clients with appropriate Insurance cover – we can therefore also assist clients with tailor-made products (where applicable) at competitive premiums. We provide a professional and personal service, as well as build long-term relationships with our clients. Discuss your individual needs with one of our experts.

Also note some of the important considerations when looking for Disability Insurance:

  • Benefits: Determine whether your benefits will be adjusted annually with inflation, or not.
  • Business Owners: Disability cover for business owners, is also an extension available through certain policies. In this instance, business overheads would be covered if the Key Person is the policy holder and he/she becomes disabled. In the event of death of a key person, cover is provided to continue the business.
  • Certain Disability Insurance policies offer the cash-back benefit at an additional premium.
  • Guarantees: Some insurers will guarantee a fixed premium for a certain number of years. This will help with your monthly budget allocation.
  • Payouts: Some policies pay a lump sum to beneficiaries. Others pay monthly income “protection” to cover monthly expenses or nursing expenses. Some even make contributions towards converting your home or car, to cater for disablement.
  • Provisions: Some policies make provision for partial, temporary and permanent disability. The compensation amount will vary pending the criteria awarded in terms of the policy conditions. Normally an objective medical method is used to measure the disability in terms of being able to do your job, and measure certain common daily functions.
  • Some insurers allow you to combine life cover, disability cover, income protection cover and/or critical illness, with accident cover – consider these options;
  • Up to what age will you enjoy benefits and cover under your disability insurance policy? Note that benefits are most likely to be calculated on a 75% basis of your last taxable income.
  • Waiting Periods: Some disability insurance products have waiting periods – make sure you understand your terms and conditions.

Please contact us today for fast, friendly, professional advice and service!

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