How does Salary Protection work?

Heard of Salary Protection cover? As the name suggests, this type of insurance safeguards a portion of your income in the event that you can’t work for a while due to illness or injury.

Salary Protection differs from lump sum policies in that it pays you a set amount on a monthly basis, which you can use to cover your cost of living and day-to-day expenses. These payments are usually a percentage of your current salary and can continue until you start working again or until a set retirement age, if you claim as a result of illness or injury.

So, how much Salary Protection will you qualify for and how much will your monthly payments be? This usually depends on a number of factors like your current salary, income requirements, age, lifestyle factors like whether you smoke or have high-risk hobbies, and your medical history.

If you’re wondering whether you need Salary Protection, consider these statistics:

• According to Stats SA, an estimated 7.5% of South Africans are living with a disability.
• According to the National Cancer Registry, South African men have a 1 in 8 chance of developing cancer in their lifetime, while South African women have a 1 in 9 chance.

Salary Protection acts as a safety net during times like these, when you may not be able to work for a period of time.

Other points to consider when looking at your insurance needs include whether you’re single or have a family to support, whether you’re the primary breadwinner, and whether you have debts to cover like a home loan or car loan.

If you’re thinking about taking out Salary Protection insurance, remember that policies offered by insurers vary in terms of what they offer and what they cover. Here are some questions that may prove helpful when looking at your options:

• What is the term of the policy?
• How does the policy define an inability to work?
• Are there any factors that could affect a future claim?
• Is there any waiting period before you start receiving monthly payments?
• How many times can you claim within the insurance term?

If you’d like to know more about Salary Protection from Standard Bank Direct life insurance services, get a quote or request a call-back.

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