While we all like to live under the precedent that ‘it’ll never happen to me’, it’s always a good idea to protect yourself in case it does happen to you. Should you become disabled, your life will change drastically. Planning now for the worst-case scenario, can help ease the financial burden when it does.
Make sure you and your loved ones are financially protected should the unexpected happen. Disablement Cover from Auto & General will pay out a lump sum should you be unable to continue within your occupational scope or should you become disabled due to an illness or physical injury.
What is Disablement Cover?
Disablement Cover is insurance that pays out a lump sum if you become disabled due to an illness or injury. Unlike Dread Disease Cover, it covers more than just serious illnesses and helps you replace at least part of your income should you become disabled.
Auto & General Disablement Cover
At Auto & General, we offer two types of Disablement Insurance policies: Occupation-Based Disablement Insurance and Event-Based Disablement Insurance. Each is there to give you surety that you will still be able to support yourself and your family if you can no longer work due to becoming disabled.
Occupation-based disablement: This product pays out a lump sum should you become totally and permanently unable to perform the tasks in your usual occupation. As well as being unable to perform any other type of work, given your education, knowledge, training, or experience. This can be due to illness or injury.
Event-based disablement: This product pays a percentage of the sum assured for a particular disability according to set criteria described in the policy. It includes injuries like loss of sight, an amputated arm or leg, becoming wheelchair-bound, and other incapacitating conditions.
If you become disabled and can’t work, you receive a tax-free, once-off payout. The amount will depend on the cover you’ve chosen. Because your life changes in unexpected ways in the event of disability, you are welcome to spend your lump-sum payout as you wish. It can be used for day-to-day expenses, therapies, or any home alterations required to make living with a disability easier on you and your loved ones.
What does Disablement Cover include?
The Disability Cover policy is tailored to your individual needs and it is up to you to decide on the amount of cover you would like.
Occupation-based disablement pays out from R200 000 to R10 million if you become permanently and totally disabled and cannot perform your normal job or other work to which you are suited.
Event-based disablement pays out a percentage of your cover amount (from R50 000 to R10 million), depending on the kind of disability you suffer. For instance, if you go blind or lose an eye, you get 50% of the amount and if you become permanently blind in both eyes, the full cover amount will be paid out.
Disablement Cover benefits include:
Guaranteed Assurability: If you choose to add this to your policy, you can increase your cover with limited underwriting or on your third policy anniversary, if your lifestyle changes. For instance, when you get married, buy a home, or start a family.
Disablement Premium Waiver: If you choose to add this to your policy, the premiums of your pure life and dread disease policy will be paid on your behalf for a period of up to five years if you become disabled or the full cover amount of your disablement policy is paid out.
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Your cover level will not decrease until five years before you turn 65 or retire.
If the full disablement benefit is paid out, your other life cover will not be affected.
You are immediately covered for accidental disablement.
No medical examinations are required.
Why do I need a Disablement Cover?
Disability cover provides for the replacement of your income as well as for additional expected medical costs as a result of your becoming disabled. Unlike Life Cover, disability cover is aimed at providing benefits for you to keep your standard of living during your lifetime.
This type of cover can be used to settle your home loan or other debts in the event of your disability. It can also provide much-needed financial assistance for adjusting to your new lifestyle including home renovations or vehicle modifications that may need to be made. It’s there to ease the initial financial burden that comes with disablement. Taking care of the finances that you would never have expected to have to face.
How is my premium calculated?
Your disability cover premium is calculated based on your specific risk profile. The monthly premium that you will pay will depend on factors like your age, gender, occupation, and current health.
When will a policy payout?
The proportion of your cover that will be paid out depends on the extent of your disability.
The full amount of your cover will be paid out in the event of total permanent disablement. This is a disablement that entirely prevents the insured from gaining employment of any kind, and that is likely to last for the remainder of the insured’s life. This condition must be substantiated by medical evidence. This includes permanent and incurable paralysis of all limbs, loss of both hands or both feet, and loss of entire sight in both eyes.
A portion (ranging from 5% to 75%) of your cover will be paid out in the event of:
Permanent loss of hearing in both or one ear.
Permanent and total loss of speech.
Loss of one limb, one hand, one foot, or entire sight in one eye.
Loss of fingers (percentage will depend on the number of fingers lost).
Loss of toes (percentage will depend on the number of toes lost).
If you claim for more than one of the above injuries/losses, your total payout when added up will be limited to 100%.
When would a claim be rejected?
A claim on your Disability Cover will be rejected in the event of:
Injury due to mental disability.
Disablement as a result of a hazardous pursuit.
Disablement as a result of alcohol or drug abuse.
Disability as a result of an accident or injury that occurred prior to the commencement of taking out the policy.
Injury as a result of natural causes.
If you are injured on the job, you will not be covered by Disability Cover as that is covered by workers’ compensation. Disability also won’t cover medical bills, as these are covered by your medical scheme or dread disease cover.
Disablement Cover quotes
Remember, you are never too young or too healthy to take out Disablement Cover. In fact, it’s important to do so when you are young and healthy as you may not be able to get cover once you already have an existing condition. Be ready for the unexpected with Auto & General’s Disablement Cover. Contact Auto & General today on 0860 10 47 89 to talk to one of our helpful consultants on the products available.
Life Insurance policies underwritten by Auto & General Insurance Limited, an authorised financial services provider. Terms & Conditions Apply.