INCOME PROTECTION BENEFITS

that provides an income for you not only if you are permanently disabled, but also if you are temporarily disabled for a period that exceeds your sick leave. For example, if a surgeon breaks his arm and cannot operate for three months, it is essential that he has a benefit that covers him for this temporary setback, Collier says.

Is there a waiting period, and if so, how long? Most income protection policies allow for a three-month waiting period. This means that you cannot claim from your policy until three months have passed, which could leave you short of cash, Collier says. Some policies have shorter waiting periods that offer more protection, particularly in the event of temporary disability.

At what age does this benefit end? It is normally 65, but can depend on your employer. Age 65 is considered the normal retirement age, although some employers stipulate 60 or 62. If the fund’s retirement age is 62, your income protection benefit will cease from 62, and you will need to have made plans to support yourself financially from this age.

Do my other group assurance benefits continue if I am disabled? It is important that your other risk-cover benefits do not fall away if you are disabled. If you are disabled, it will be very difficult to obtain any risk cover, so it is important that the balance of your cover remains intact, Torr says.