Do you have a gap in your policy?

Just as life changes, so do your cover needs. Many people buy an income protection policy and then never think about it again. However, your insurance needs change as your income and lifestyle changes. Without regular review, you could face unexpected gaps in your current cover when you come to claim – gaps that could leave you exposed in your time of need. When it comes to Income Protection, make sure you’re properly covered.

To identify if there are gaps in your current income protection policy, ask yourself:

• Does my policy cover my income as it stands today? Over time, people change jobs and experience fluctuations in their income. With an increased income often comes a more expensive lifestyle. If you were to become disabled, will your current cover allow you to continue living as before? FMI’s policies allow for volatility of income over time so that, should you need it, your benefit payments will allow you to maintain your lifestyle.
• Does my company benefit cover 100% of my income? Many people think that because their companies offer disability cover, they will be covered in the case of a disability claim. The truth, however, is that most companies cover only 75% of employees’ pensionable income and almost never cover variable income such as commission earnings. Additional income protection might be needed to bridge the gap.
• Can I survive the waiting period in my existing policy? While you may have cover in place, if you are disabled and make a claim, your selected waiting period will have to pass before you are paid out. Most employee benefit schemes have a 3 – 6 month waiting period or only cover Permanent Disability claims.
• What kind of Permanent disability cover do I have in place? Permanent disability cover comes in two forms – Capital Disability and Permanent Income Protection (also known as Income Replacement benefits). As these offer different benefits, FMI recommends a combination of the two, depending on your needs.
• Am I covered for both temporary and permanent disability? Some people only have Permanent disability cover but this does not cover temporary claims, which are more likely and can have disastrous financial consequences. Make sure you have the right cover in place, whatever happens. Talk to your Financial Adviser today.

At FMI, we encourage our policyholders to regularly re-visit their policies and ensure that they are up-to-date and relevant. Chat to your Financial Adviser to make sure that you have holistic cover in place. Visit our website to learn more about FMI products.