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THE FMI APPROACH TO INCOME PROTECTION

There are different forms of Income Protection and they cater for different types of disability risk. We believe that the correct way to design disability cover is to first put in place temporary and then permanent cover so that individuals enjoy a combination of both benefits. Looking at Income Protection holistically means that, should you become disabled, your lifestyle will be protected.

TEMPORARY DISABILITY COVER

While most people worry about permanent disability, they don’t realise that an unexpected temporary interruption in income can have equally devastating effects on their lifestyle. FMI’s research shows:

  • You are much more likely to suffer from a temporary disability than a permanent one
  • Most disability claims are temporary in nature (lasting three months or less)
  • Most people claim more than once in a lifetime.

Permanent disability cover does not cover short, temporary disabilities or allow for multiple claims, making temporary cover an essential part of complete Income Protection.

Temporary Income Protection is designed to pay out a monthly amount over the temporary disability period or over the waiting period in the case of permanent disability.

Temporary Income Protection allows you to focus on your recovery rather than on having to worry about replacing your income. At FMI, we believe so strongly in the importance of Temporary Income Protection that it is compulsory on all our policies.

PERMANENT DISABILITY COVER

Permanent disability cover can separated into Capital Disability (lump sum cover) and Permanent Income Protection (income replacement benefits):

 

CAPITAL DISABILITY COVER

PERMANENT INCOME PROTECTION

Pay-out
  • Once-off lump sum pay-out
  • Monthly income replacement benefits

POSSIBLE USES
  • Once-off major lifestyle changes
  • Business assurance
  • Investment purposes
  • Replaces your regular income
  • Regular payments until retirement or death, as per the policy terms
  • Maintaining your current lifestyle

TAX BENEFITS
  • Premiums are not tax-deductible
  • Premiums are tax-deductible

RISKS
  • Outliving your pay-out
  • Not realising expected returns due to poor investment performance or unexpected inflation
  • Payments end on death of policyholder

Depending on your needs, FMI suggests a combination of Capital Disability and Permanent Income Protection to ensure complete cover for permanent disability. Learn more about permanent Income Protection...

At FMI, we believe in holistic Income Protection – putting in place both permanent and temporary disability cover to protect you against different forms of disability risk. This recognises the strength of different Income Protection products, ensuring holistic cover when you need it most. Talk to your Financial Adviser about FMI’s offerings.