Probably the biggest evolution in product design, disability benefits have become far more claimable. This has also made them more complex. Once one has established what level of disability cover is required, the next step is to choose the most suitable product to meet your need. Making it even more complex, you can choose a combination of income and lump sum disability benefits, and under the lump sum category, you can choose a number of different types of lump sum benefits. For example:
- Protecting your monthly income – This benefit pays a regular monthly income if you experience a loss of income on becoming partially or fully unable to work due to an injury or illness. This benefit should be taken to meet the needs of your monthly living standards.
- Lump sum disability – This benefit provides a lump sum to ensure that you remain financially secure, have the ability to settle your debt, and possibly cater for a lifestyle adjustment. Disability benefits have become extremely comprehensive. Not only do they cover your ability to perform your own occupation, but also cover the impact a disability has on your lifestyle and ability to function normally.
- Functional impairment – A bodily injury or illness that permanently holds you back from enjoying the same mobility that you enjoyed before you became impaired. This benefit has no link to your occupation. Examples of functional impairments include dementia, cranial nerve damage, cancer and damage to the cardiovascular system.
- Physical impairment – There is a permanent impairment that cannot be substantially removed by reasonable treatment, including surgery. The physical damage has caused body or mental incapability. There is a physical loss or loss of use of limbs, senses and digits, or confinement. This benefit has no link to your occupation.
- Activities of daily living and activities of daily work – Work and living activities are not related to the life insured’s specific occupation; this includes walking, bending, lifting, communicating, reading and fine motor skills (such as holding a pen).
- Occupational disability – Permanently disables the insured life to the extent that he or she is no longer able to perform duties related to his or her own occupation.
- Severe illness benefit – A severe illness is an illness that affects your lifestyle in such a way that your ability to function normally is altered. This benefit covers illnesses affecting all major physiological and anatomical systems of the body. Note: The benefit can be taken as a stand-alone benefit, or can be part of the life benefit. You can also choose to have the cover expire at age 65 or could choose the benefit to continue for the whole-life option.
- Female benefits – Along with the severe illness benefit, there are benefits specifically designed for women. The reason for this type of benefit is that women face the risk of certain cancers that only affect them (such as breast, uterine and cervical) as well as all the potential complications associated with pregnancy and osteoporosis.