Loss of Income Benefits

Loss of Income Benefits from Psidean Financial Services

By: Psidean Financial Services  10-25-2011
Keywords: Financial, Financial Advice, Financial Planning Services

We should give meaning to life, not wait for life to give us meaning. Anonymous You are your greatest asset Your income probably looks after your family, your home, your car and your dog. What if anything happens to you and you can no longer work? Because your income is your greatest asset, it’s important that you protect it as well as any potential income you may still earn. Do you think you’re too young to worry about this now? Think again – your income at the moment not only determines your life right now, but also your future. We’re not saying don’t go out and enjoy life but when you have some time think about what it is that you want from life. You certainly have dreams and aspirations, what about owning your own business, or travelling to exciting destinations? You need an income to do all that. If you have a family, you are concerned not only about losing your income, but also about how this will affect their future. Your children’s education may be compromised, the lifestyle that they are accustomed to may need to change, and you may have to sell your house or car to cover your daily expenses. Don’t put yourself and your family through all the stress and anxiety; we know how concerned you are about your partner and children, we have families too and that’s why we want to help you protect yours. The need for income protection depends on how large your future potential income is, or think of it this way: how much do you or your family stand to lose if you are disabled? Can you afford not to protect them? Income Disability Think for a moment, will your employer continue to pay your salary for a long time while you recover from an accident or illness? Perhaps, but what if you are ill for more than two or three months, or if an injury lays you off work permanently? You may not be able to rely on your employer, or even on claiming UIF for an income. What about entrepreneurs who work for themselves? Your income is dependent on your ability to meet your customers’ requirements. That’s why you need Liberty’s Income Disability benefit. It provides you with a monthly benefit of 75% of your income when you are ill or injured and are unable to work. You will be paid: • a temporary benefit if your injury or illness is temporary • a partial benefit if you suffer from a partial disability (i.e. a partial reduction in income) • a monthly income until the end of the selected benefit term, i.e. 60 or 65 years old, if the disability is permanent. Add to your Income Disability payout: top-up your cover If you choose to wait six months or less, you may choose to top-up your Income Disability cover. With the Top-Up Option you receive an additional 33% of your Income Disability sum assured for up to 24 months, equalling 100% of your income. The Top-Up Option can give you the money to recover completely and pay for any training or additional skills programmes you may need to go back to work. In addition, your monthly premium for this benefit will be waived while you are claiming under this benefit. A number of options are available if you want to ensure that your benefit amount keeps up with inflation, both before and after you start claiming. This benefit is selected in addition to your Life Cover, and claiming on this benefit does not reduce your Life Cover sum assured. How long will I be covered? As this is not a retirement annuity, it only provides you with an income if you cannot work and therefore ends at the policy anniversary prior to your 60th or 65th birthday (normal retirement age). How long do I have to wait for my benefits? That depends on you and the waiting period you choose. If you are self-employed or a fee earner, you can choose a short waiting period of just seven days. You can also select that your cover is backdated to the first day. We understand that if you are self-employed or earn fees that you have to provide for your own income even during short periods of incapacity. Salaried people will in most instances receive an income from their employers for shorter periods of incapacity. If you fall into this category you may choose a waiting period of one month, three months, six months, 12 months or even 24 months. Remember that choosing a longer waiting period, although more affordable, will put more pressure on your own resources. Assessment of your future income You can review your Income Disability sum assured immediately after each policy anniversary to make sure you still have sufficient cover. This gives you the opportunity to increase your benefit amount annually by an additional 9.5%, over and above the automatic benefit increases that apply at policy anniversary. This ensures that your cover keeps up with your actual annual salary increase. The premium for this benefit will be tax deductible. Temporary Income Disability Life is unpredictable and that’s what we love about it – a surprise around every corner, but sometimes the surprise is not quite what we expected. You always want to make sure that your family is protected from the unexpected potholes in the road. We know that money can sometimes be tight, but that shouldn’t stop you from taking the necessary precautions. That is why we offer a more affordable option for the most comprehensive cover. The Temporary Income Disability benefit is a brand new benefit that pays 100% of your monthly income if you are unable, due to illness, injury or accident, to do your job. The benefit is payable on temporary and permanent disability for 24 months in the event of continuous disability. The benefit will also pay in the event of multiple periods of temporary disability of shorter durations. A proportionate income benefit may also be paid on partial disability. For the most comprehensive cover take a Temporary Income Disability benefit with any of the loss of Income Protection options such as Capital Disability and Income Disability: Temporary Income Disability + Capital Disability/Plus = Affordable protection for temporary or permanent disability with the added benefit of the lump sum payment! From when will I be covered? This benefit will provide you with an income if you cannot work and therefore ends at the policy anniversary prior to your 60th, 65th or 70th birthday. How long will I have to wait for my benefits? That depends on you and the waiting period you choose. If you are self-employed or a fee earner, you can choose a short waiting period of just seven days. We understand that if you are self-employed or earn fees that you have to provide for your own income even during short periods of incapacity. Salaried people will in most instances receive an income from their employers for shorter periods of incapacity. If you fall into this category you may choose a waiting period of one month or 6 weeks. In-claim escalation At the anniversary of the start of the claim, the claim amount will automatically be increased in line with CPI (capped at 10.5%). Super in-claim escalation If you are younger than 30 the ‘super in-claim escalation’ will apply to you. In the event of a claim the claim amount will increase at the anniversary of the claim payment by up to 200% of CPI (capped at 21%). Why do we do this? Because if you are younger, you stand to lose more on future potential salary increases which would typically be higher than what the normal in-claim escalation covers. Assessment of your future income You can review your Temporary Income Disability sum assured immediately after each policy anniversary to make sure you still have sufficient cover. This gives you the opportunity to increase your benefit amount annually by an additional 9.5%, over and above the automatic benefit increases that apply at policy anniversary. This ensures that your cover keeps up with your actual annual salary increase. The premium for this benefit will be tax deductible. Living Lifestyle Enhancer As part of the Temporary Income Disability benefit, you have the option of selecting the Living Lifestyle Enhancer for further protection if you are diagnosed with a serious illness. This option ensures that you receive a payment in the event of suffering a critical illness or traumatic event, which can affect your lifestyle, whether or not you can still work. Just one more way we help you to safely navigate life’s unpredictable moments. Don’t allow unforeseen medical costs to curb your lifestyle or your lust for life. We can help you to manage these less than- pleasant events – we are there to look after you and your family. The benefit will pay you a lump sum equivalent to your Temporary Income Disability sum assured if you are diagnosed with a critical condition. How long will I be covered for? The benefit term available on the Living Lifestyle Enhancer is a choice between: • the same term as the Temporary Income Disability benefit; or • whole of life. The survival period on the Living Lifestyle Enhancer benefit is 14 days from date of diagnosis, with or without the use of life support. How does this benefit work? The Living Lifestyle Enhancer pays out 24 times your monthly sum assured as a lump sum in the event that a critical illness or trauma-related event such as brain, head, neck or spinal injury, coma, major burns and loss of limbs or loss of use of limbs is suffered as specified in the benefit categories. The benefit may be advanced, by paying 3 times your monthly sum assured in the event of early diagnosis of an illness or requiring surgery for a minor condition. • It pays out a lump sum for critical conditions, even if the condition may not necessarily also qualify for a Temporary Income Disability payout. • Example: Dave, diagnosed with stage one cancer will still be able to work and as a result will not qualify for an temporary income disability payout. He will, however, receive a lump sum of 24 times his monthly sum assured under the Living Lifestyle Enhancer benefit. • Please note that the Temporary Income Disability and Living Lifestyle Enhancer will pay out independently. • Example: Bob is involved in an accident and is in a coma for six months. He will receive a payout under both Temporary Income Disability and Living Lifestyle Enhancer. 31 Benefit Categories covered by the Living Lifestyle Enhancer benefit: • cancer and leukaemia • cardiac and cardiovascular system • stroke • multiple sclerosis • motor neuron disease • parkinson’s disease • myasthenia gravis • alzheimer’s disease and progressive dementia • other central nervous system disorders • coma • renal disorders • urogenital disorders • respiratory disorders • chronic liver disorders • endocrine conditions • aplastic anaemia and other blood disorders • gastrointestinal disease • pancreatic disorders • muscular dystrophy • paralysis • rheumatoid arthritis • other autoimmune disorders • loss of hearing • loss of sight • loss of speech • traumatic injuries including brain injuries, head and neck injuries, spinal injuries and coma • loss of and loss of use of limbs • major burns • accidental HIV • AIDS • Catch-all benefit.

Keywords: disability products, Financial, Financial Advice, Financial Planning Services, Risk Insurance, Wealth Advisor

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