LIFE COVER / DISABILITY
What is Long Term Insurance and Disability cover and why do you need this cover?
Long-term insurance is insurance that covers life-changing events in life, such as death, retirement, trauma cover and disability.You pay a monthly premium over a long period of time until you die or the long-term insurance policy matures at a specified date. Long-term insurance includes life insurance and funeral insurance that provide for your family after your death. It also includes retirement annuities and endowment policies to provide you with either an income when you are old or a lump sum payment on the date on which your policy is paid out.
Life Insurance: Whole life cover is an ordinary life cover which is valid until you die or surrender the policy. It covers you against the risk of death. This policy is ideal for a person who wants to leave a fixed amount of money behind after death, e.g. to pay estate duty, to care for the needs of a spouse and children, pay off debts, pay the cost of childcare, buy a business partner’s shares or pay final expenses. It is the least expensive form of life cover. The monthly premiums are invested by the insurance company. Consumers have a choice to choose the specific cover – and premium growth they need according to the product structure, and their financial needs. Cover will be paid as lump sum payment or in the case of Brightrock insurance the client will have a choice between a lump sum payment or a recurring payment.
Term Insurance: Term or fixed insurance is ideal if you need to provide life cover for a set period of time , e.g. while paying off a bond on your house. It is not expensive and you can easily add benefits to it, such as a lump sum for disability. After the agreed period of time, the cover simply expires or the premium can be used to purchase other cover if you are insured at Brightrock insurance. Consumers will have a choice to choose the specific cover – and premium growth they want according to the product structure and their financial needs.
You could lose the use of your hands or legs, or suffer from chronic illness, forcing you to stop working. Disability cover is designed to cover you in this regard. It is usually added to life cover, but can also be bought separately. There are mainly two kinds of disability cover, namely:
1. Capital Disability Cover: Capital (or lump sum) disability cover can be added to life insurance or be taken out as a separate product. The client may choose to have the cover accelerate against their life cover, e.g. once the claim is paid the claim amount will be deducted from the life cover amount, or the client can choose to have the disability cover as a non-acceleration benefit , e.g. in which case the claim payment will not affect the life cover. Claims will be paid as lump sum or they may choose to have it paid as lump sum or a recurring premium at Brightrock insurance. Most insurers will need proof of loss of income and may re-evaluate your condition and will aggregate your disability income against other income you receive, but at Brightrock they will NOT request proof of income, re-evaluate your condition and also not apply aggregation against other active income you receive. Claims may be paid once off or multiple claims may be paid depending on the insurer you choose. The correct advice in this regard is very important.
2. Income Protector Disability Cover: This cover will insure you against the loss of income. In effect, if you are permanently or temporarily disabled, it can replace your salary until you recover or die, or the policy matures, whichever comes first. Claims will be paid as lump sum or they may choose to have it paid as lump sum or a recurring premium with Brightrock insurance. Most insurers will need proof of income and may re-evaluate your condition and will aggregate your disability income against other income you receive, but at Brightrock they will NOT ask for proof of income, re-evaluate your condition and also not apply aggregation against other active income you receive. Claims may be paid once off or multiple claims may be paid from your benefit. The correct advice in this regard is very important.
Trauma Cover: Cover for trauma will insure your risk against the costs involved in the case of a life changing sickness/health condition/s e.g. cancer, heart attack, diabetes, alzheimer’s disease, stroke, etc. Cover for trauma is ideal when you will need a fixed amount of money to cover the costs of healthcare, change in lifestyle, subsidise medical scheme plan changes, childcare etc. Claims will be paid as lump sum or at Brightrock you may choose to have it paid as lump sum or as lump sum and a recurring premium. It will depend on the insurer you choose on how many sickness conditions will be covered, at what percentage of the cover amount the claim will be paid and will the claim be paid once or will you have cover for multiple claims. Brightrock for exampel cover 300 conditions + an extra 30 conditions from the advanced pay-out facility. Claims will be paid as lump sum or they may choose to have it paid as lump sum and a recurring premium at Brightrock insurance. The correct advice in this regard is very important.
We offer you a variety of insurance products availbable from the following Insurers e.g.: Brightrock, Discovery, Hollard Life and Momentum