Disability Cover
A sound financial plan will make provision for disability cover in your portfolio. If you are unable to work for any reason, there is a loss of income which is the driving force behind your whole lifestyle and financial future.
Disability cover today is more comprehensive than ever before in order to cater for the many possible causes of disability whether it is temporary or permanent.
Capital Disability and Income Replacement are the most common types of disability cover that are on offer today but what is the difference between the two?
Capital Disability
Capital disability cover will pay you a lump sum benefit in the event that you are unable to work due to permanent sickness or injury. In most cases this will be a once off benefit and is intended to be used to assist with life changing circumstances such as medical care, adapting a property and car for your disability or to help replace lost income.
Ideally Capital Disability should be taken in conjunction with Income Replacement to provide fully comprehensive disability cover.
Income Replacement
Income replacement cover is designed to replace your monthly income (up to permitted limits) should you be temporarily or permanently unable to work due to sickness or injury after a defined waiting period which can vary from 1 week to 12 or 24 months. Cover is normally taken up to age 65, 70 or even whole of life.
Selecting the correct income replacement structure is critical to ensure you have adequate cover.