There has been a marked reduction in life insurance claims in recent years – this is according to the experts and providers of life insurance policies.
Perhaps this is a direct result as Aids becomes a far more manageable disease and fewer people seem to be dying from Aids, resulting in an easing up on the costs of life insurance premiums as a whole.
On the other hand, disability insurance claims – primarily due to Aids-related issues, have increased, with more individuals recovering and returning to work.
The money used on life insurance premiums contribute to disability insurance that is paid out as a replacement for monthly income.
There are numerous benefits regarding disability insurance cover for employers as it will attract the best of the best and retain the finest staff on offer.
Millions of South Africans are under insured because they simply cannot afford the insurance premiums and many don’t have the capacity to do it on their own.
That is why disability insurance that is being offered to employees by employers will earn a reputation that the company is caring; furthermore, it is the ethical duty of the business to continue to pay salaries even though an employee is too sick to continue working where the salaries are still being met.
There are a couple of pointers to bear in mind when selecting disability benefits.
One of these is where it permits for continued contributions to other benefits.
Think in the long-term and not the short-term as far as medical aid and retirement contributions are concerned; if you have not thought these through carefully it could cause an extra financial burden further down the line – particularly if the employee is unable to afford it during times of illness.
Also, factor in escalation policies in terms of pay-out – select disability insurance where the insurer will look after the claimant for the next 30 years – if the benefit remains static in 15 years’ time it will have lost much of its value.
Also, bear in mind waiting periods on your disability insurance policy. Waiting periods usually range from three to six months – the waiting period usually goes according to the sick leave policy of your company.
Even though these tips might seem insignificant at first glance, they can have a huge impact should you need to claim for disability insurance in the long term.
As Aids becomes more and more manageable – employees might need temporary respite from work to get treatment.
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