A possible risk that we all face during our life time is that of becoming disabled due to an accident or illness. In some cases you might still be able to work, but if your disability is so severe that you can’t continue working, you will need some form of income to cover your monthly living expenses. That is what disability cover is for. Speak to a qualified financial planner to determine your disability and dread disease cover needs. The benefits and conditions will differ from one company’s individual policies to another.
Disability and dread disease cover provides for the replacement of your income as well as for additional expected medical costs as a result of your becoming disabled or contracting a dread disease or critical illness. Unlike death cover, disability and dread disease cover is aimed at providing benefits for you to keep your standard of living during your lifetime.
Disability benefits can be structured as lump sum payments to settle liabilities and the balance can be invested to provide an income or can be purchased as a monthly income disability benefit which will provide a monthly income in the event of disablement. A monthly income disability benefit will pay until one of the following:
You need to sit with a qualified financial planner to work out:
Once this all has been taken into consideration, your financial adviser will be able to calculate what level of income your current disability and dread disease cover will provide and how much additional cover you need to buy to meet your ependants’ specific income needs
As you get closer to retirement, a financial loss can have a significant impact on your retirement savings. Speak to a financial planner and make sure that you are insured for anything that could take money out of your retirement savings.