The economic disruption of Covid-19 could lead to an interest in protection planning for advisers. The former head of Cofunds and now chairman of Soprano Consulting Stuart Dyer told Money Marketing the Covid-19 crisis is the worst he has seen in his lifetime. He argues the scale of disruption to whole swathes of the economy and the unforeseen source of the downturn has tested the resilience of business continuity plans. But he also points out the disruption to the way employees and businesses work could present opportunities for advisers. He says: “One of the things we are starting to see is an increased interest in protection. It is the Cinderella of advice in many ways but some of...
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How are Life Insurance premiums calculated? It’s important to understand how your life insurance premiums are calculated so you know what you’re paying for. Life cover is mainly designed to protect your family, home and business if anything happens to you. Ultimately if you were no longer around to support your family or your income was impacted because of an illness or accident, these policies would relieve the financial burden. Life insurance, critical illness cover and income protection all come under the same umbrella of personal protection products. Life insurance is the main type of cover because it’s the most common and the most affordable. This is simply because you’re much...
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Income Protection is an insurance policy designed to provide financial support if you cannot work because you are ill or injured over a long-term period of time. It offers a regular income until you are able to return to work or even retire. Income Protection is different from critical illness insurance which pays out a one-off, lump sum if you have a particularly serious illness. It is also different to short-term income protection which, whilst it does pay out a monthly sum related to your income, it only pays out for a limited period of time (most policies cover two to five years) and often covers fewer illnesses or situations. Income protection (or short-term income protection) does...
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How much do you think you will earn over your lifetime? R2-million, R3-million or R10-million? A survey conducted by life assurer FMI shows that more than half of the South Africans surveyed thought they would not earn more than R10-million over their lifetimes. Yet a 25-year-old earning R15 000 a month that increases at 6.5% a year and working for 40 years to age 65, will earn R28-million, FMI says. If you understood how much your capacity to earn an income - your biggest asset - was worth, you might be more inclined to insure your income. Should you be disabled at age 25 earning R15 000 a month, this is the level of lost earnings you would need to replace. And the risk is high - 70% of...
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In 2011 over 1.2 million South Africans were dependent on the government disability grant for survival. This grant provides the beneficiary with a little more than R1 000 a month. The question is, can you support yourself and your family on a maximum amount of R1 260 per month? This post focuses on income protection from Frank.net, a life investment company that tells it like it is. sells life cover, disability cover, serious illness cover and salary protection directly to the customer, without using brokers. The Income Protection Product offers both temporary and short-term income protection should disaster strike. If you’re legally retrenched will make monthly payouts of an agreed...
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When it comes to assets people tend to think of tangible items like a house, but very seldom do they stop to consider their greatest asset, their income earning ability. Your income earning ability will mean more to you than other assets over your lifespan as it will determine your wealth or lack thereof. This is what makes Income Protection such an important aspect of your financial planning. Income protection not only protects your ability to earn an income, but also protects your cash flow which if it were to stop could cripple you financially, especially in the case of business owners, who have overheads to cover. Income Protection as an insurance product is offered by various insurers...
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Unum's Executive Income Protection is designed for small/medium-size businesses looking to offer selected employees the benefits of an extended sick pay arrangement. In the event of injury or illness that leads to loss of earnings, the plan pays a regular monthly benefit to the employer that can be passed on to the employee to help meet their financial commitments, without having to rely solely on state benefits. Tailored cover A range of flexible cover and benefit payment options enable an employer to tailor cover to meet the needs of their business as well as their employees. Options include: choosing a level of cover up to 80% of the employee's gross earnings, including P11D benefits and...
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ActiveQuote, the UK’s leading protection insurance comparison website and broker, saw income protection insurance enquiries peak in the last week of February, due to ongoing fears and media coverage around the coronavirus outbreak. ActiveQuote is also seeing some income protection insurance providers change their underwriting terms for new customers. Some providers have changed question sets to ask new customers if they have lived or travelled to a list of affected countries in the past 30 days, including many Asian countries, China and Japan, as well as northern Italy. There has also been an increase in customer calls to ActiveQuote from people who already have an income protection...
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New 2019 Report on “Income Protection Insurance Market size | Industry Segment by Applications (Men and Women), by Type (Short Term Income Protection Insurance and Long Term Income Protection Insurance), Regional Outlook, Market Demand, Latest Trends, Income Protection Insurance Industry Share & Revenue by Manufacturers, Company Profiles, Growth Forecasts – 2025.” Analyzes current market size and upcoming 5 years growth of this industry. The recent report on Income Protection Insurance market provides a comprehensive analysis of this industry scenario with respect to an array of pivotal parameters. As per the study, the market will accumulate momentous gains by the end...
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Group income protection (GIP) provides an income to an employee when they are unable to work as a result of an illness of injury. Payment usually starts after a set waiting period, normally six months, and can continue until the employee returns to work or, if earlier, state pension age. In addition to financial support, GIP can help an organisation manage long-term sickness absence, offer rehabilitation services, such as counselling or physiotherapy. It can also provide partial benefits when an employee is able to return to work on a part-time basis to a lower-paid role. What are the origins of group income protection? The first modern GIP policies were written in the 1950s but a broader...
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