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  • Writer's pictureLisa Perry

Ways to maintain your income when you can't work

Updated: May 2, 2023

The PWH Wealth Team specialize in choosing the best products to fit our clients.

Income-protection disability cover that pays a monthly income is the best match to replace your income and should include temporary disability cover.

A staggering 70% of South Africans will, in their lifetime, have a disability that will prevent them from earning an income either temporarily or permanently.

Yet only 47% of South African consumers think they will suffer a temporarily disabling injury during their working lives.

These statistics are highlighted in the #RealityCheck Consumer Survey conducted by life assurer FMI...……..

Tips to remember

Lump-sum disability cover can be taken out as an accelerated benefit on a life policy and this will cost less than stand-alone cover.

• An accelerated benefit pays out only once - so if you are disabled it will pay out then, and when you die there will either be no benefit or only the balance of the benefit.

The rationale for this is that if, for example, the benefit settles your home loan on disability, then you don't need a benefit covering this debt when you die.

• Rebalance your insurance portfolio regularly and whenever there is an event like a new baby, a new house or a new job.

The need you have to replace your income generally reduces as you grow older and your children leave the home and become self-sufficient.

• Compare risk products between providers but understand that a cheaper premium may mean fewer benefits, exclusion clauses, different definitions of disability, different premium increases or a different term cover, to age 55 or 75 or for life.

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