So you have organized death cover and feel secure that your family will be taken care of should the unthinkable happen, but what about the following scenario: you don't die but are too badly injured to return to work? How will you support yourself? Even worse, what will you do if you have dependants as well?

Planning for the event of disability can be done in the form of Capital Disability Insurance or Income Disability Insurance, with the ideal solution being a mixture of the two.

Capital Disability

A capital disability policy pays the insured a capital lump sum amount. Different Insurers use different claim filters to assess disability claims and most Insurers pay the insured's actual lump sum or a percentage of the lump sum dependant on the severity of disability.

Income Disability

Traditional income disability benefits allow clients to insure a maximum of 75% of their monthly income. A unique and powerful feature of certain product offerings is the fact that the benefit payment upgrades to 100% of a client's income on permanent disability. This type of policy is income based and provides an income if you are injured and are unable to continue working either temporarily or permanently.

While it's always important to seek value for money, it is essential to make sure you fully understand the benefits of each policy before implementation. Income replacement policies are technical products that can be structured in a variety of ways, making it essential that your individual requirements and needs are assessed by an Advisor and a fitting vehicle is implemented for you.

A Combination of both types of disability cover is the ideal solution, where capital disability provides a lumps sum benefit to allow you to make changes to your environment to accommodate for your disability, the income disability cover allows you to continue earning your income that you became accustomed to prior to your disability.

A DSA accredited Advisor can assist you in piecing together a financial plan for the event that you become disabled and no longer have the mental or physical ability to earn the income you did before.