Disability cover explained

A disability cover also known as the accidental disability cover is an insurance product that covers a policyholder should they […]

Disability Cover

A disability cover also known as the accidental disability cover is an insurance product that covers a policyholder should they suffer a disability. The disability should occur because of an accident and not intentionally.

A disability cover is much needed in South Africa because of the increase in the number of road accidents each year. There are approximately 1 million road accidents that happen in South Africa every year. Projections show that the number of accidents will increase in the near future.

To make sure that your financial needs are taken care of during a disability, you will need a disability cover. A disability cover will help you when you are no longer able to generate income yourself.

Bills will still need to be paid so you need a plan that will help you financially when you are disabled. Disability insurance will be of assistance in such circumstances, it will pay you directly when you suffer a disability.

A disability cover is usually a complementary product that you can take with a life insurance policy. Bundling a disability cover with a life insurance cover will likely lower your monthly premiums.

Advantages and disadvantages of a disability cover

A disability cover comes with its own advantages and disadvantages. Having a disability cover doesn’t necessarily mean that you can claim whenever you suffer a disability.

You need to make sure that you know the advantages and disadvantages that come with a disability cover. Different insurers provide different grounds to claim, therefore, some of the advantages and disadvantages may not be applicable to other insurers.

However, we will list the advantages and disadvantages that are most common on disability covers. Below are the advantages and disadvantages of a disability illness cover.

Advantages of a disability cover

Cover for a disability: the fact that you get a cover for a disability is special. A disability cover is very crucial as it will help you financially in time you might find yourself needing financial assistance.

Focus on recovery: since you are financially covered and have no financial worries in your mind, you can worry about what is important which is your recovery. You will be able to dedicate all your time and thought to recovery doing away with all financial stresses.

Money when you need it: money comes exactly when you need it. A woe of not having money during a disability can cause strain to your recovery so a disability cover comes in handy to fix your monetary problems.

During this period you won’t be able to work so this money will highly likely be your source of income if you don’t earn any passive income.

The benefit is tax-free: payout from your disability cover is tax-free so you will get to enjoy tax-free benefits. This tax exemption will allow you to have all your payout money to yourself to use it during rehabilitation.

Money available for rehabilitation: you will recover in peace knowing that you have enough money for recovery. You will be able to redesign your home to suit your disability, pay for medication, pay for specialist consultation, etc.

Disdvantages of a disability cover

Cover limit: maximum amount of cover may not be able to cover all your needs during recovery. You might need specialised technology to help you with recovery, however, your disability cover may have paid out less to cover such treatment.

Cover limitations: those that injure themselves purposely will not get anything from a disability cover. Intentional injuries are those that one may incur while breaking the law or exposing oneself to war or warlike activities.

Waiting period: the disability cover has a waiting period whenever a beneficiary makes a claim. The waiting period can be between one month and 3 months. During this period you might not have any choice but to use some or all of your savings.

What you get from a disability cover

Disability Cover

A disability cover comes with great perks that one can enjoy while in the hospital or at home recovering. With a disability cover, you get to choose from a number of options on what exactly you want to benefit from the cover

There are mainly two choices that you can make when buying a disability cover. You can choose to protect your income or have a lump sum cover. However, these are not the only two options available for a disability cover but they are the most popular.

Here is a brief discussion of the income protection and the lump sum cover below.

Lump sum cover

A lump sum cover is a benefit that pays a single payout when one becomes permanently disabled. This is a form of security that is usually used by many people around the world to make sure that should they suffer a permanent disability they can still live their lives regardless.

Since the money comes at once, many use it to settle their long term liabilities and other obligations. The lump-sum cover is an ideal source of financial security when disabled.

Income protection

This is an income protection plan that makes sure you receive income regularly when temporarily or permanently disabled.

The income protection cover lasts until you retire. Retirement is nominated by a policyholder. The cover pays a monthly income that is equivalent to 75% to 100% of your taxable income. Therefore, you will be able to maintain your lifestyle regardless of your health status.

The cover is suitable for those who are employed and looking to protect their income should something happen to them.


A disability cover is as valuable as other types of insurances. Considering that disabilities cannot be foreseen, it is always a wise decision to get a disability cover. Taking a cover that suits your budget is highly advisable.

Investment in your future is crucial and gives you peace of mind. While planning for your life, put your health on the forefront and prioritize it. You may never know when you are going to most need a disability, critical illness or health insurance, it is ideal to have them all.

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