Do you have a disability insurance? If you don’t, you must know you need it. Disability cover is not just an insurance. You need disability provision to protect your earning. Should you get disabled, will you be able to continue working? Will your house be modified to accommodate your new situation. The last question, no one knows. That is why you need to provide for your disability. We don’t know what future may have in store for us. We don’t know what will happen when.
Remember that, disability is not only caused by accidents. Sometimes, you get ill and then later. You find out that your arms or your legs need to be amputated. Some people lose sight because of illness. If that happen and you already have a cover in place. Then you will be able to claim from your insurer. Meet your pensions halfway.
Young and premiums
If you are a young guy, with qualification, reasonable income and healthy. You are likely to pay less. But there are many factors taken into account to determine client premium. You might not pay the same premium as your colleague or friend. But this should not discourage you from taking insurance. Be honest with your insurance company. They them anything you think they may need to know about you.
Provident and Pension Funds
Retirement funds also provide for disability. But remember that. It may be limited to maybe 5 times your annual cost to company (or salary). And then you will need extra cash to pay for other costs. Your disability might not be something that will heal after five years. Your day-to-day expenses may increase as a result of disability. You may have medical bills piling up. Medical aid has a limit on things they pay for per year. You will have to pay some medical bills out of your own pocket. And family will be expecting you to continue supporting the financially.
Insurance companies
There are various insurance companies that provide disability cover. They have different terms and conditions. You may have fully underwritten cover or have a cover with limited underwriting. And the cover you take, is based on your income. You are protecting your ability to generate income. These covers can also be taken when buying a house. They will protect you against having your house repossessed by mortgage bond issuer. It could a bank or other lenders. When you get disabled, at least you know that you will claim from insurer and have your house paid up.
Talk to a Financial Planner.
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