Income Protection products provide a monthly income for employees who are occupationally disabled for a short or long period due to illness or injury. Hospital and maternity cover can be linked to income protection as these situations also impact on income generation.
A lump sum disability benefit is available on its own or in various combinations.
GROUP INCOME PROTECTION DISABILITY COVER
Following occupational disability, Group Income Protection provides a regular income until the member recovers, returns to work, dies or retires. Some claimants may depend on the benefits for a considerable period, e.g. Old Mutual is still paying a claimant after 35 years.
GROUNDBREAKING TERMS AND CONDITIONS
• All members qualify for the same definition of disability even those who perform riskier occupations, e.g. security guards, drivers and pilots
• Limited exclusion for self-inflicted injuries on schemes with more than 20 members
• A 12 month submission period for claims
• Partial benefits are available from the start, helping employees stay at work despite some health issues that impact on their ability to work
• Claimants can relocate and travel overseas without worrying that their income benefit will be stopped
TEMPORARY INCOME PROTECTIONThis dynamic product provides up to an agreed number of monthly income benefits under a generous definition of disability. The payments end when the member returns to work, dies, retires or reaches the maximum payments.
Temporary Income Protection can be customised in a number of ways:
• The waiting period can be as short as seven days for accidents and two weeks for illness
• The payment period can be up to 24 months, including the waiting period
• An Own Occupation with Own Employer definition is available to mirror sick leave if the combined length of the waiting period and the payment period is nine months or less
LUMP SUM DISABILITY BENEFIT
This product pays a full lump sum benefit in the event of total and permanent occupational disablement i.e.
when the employee has become permanently unable to work in the open labour market.
Old Mutual’s product includes two unique features:
• a partial lump sum benefit equal to 50% of the full cover – which is paid when the employee does not qualify for the full benefit yet is not able to work at the same company anymore. This creates flexibility in the lump sum context, as it allows employers to end the work relationship in a compassionate way and helps facilitate a career change
• a no waiting period option which ensures that claimants receive the benefit as quickly as possible.
Claims are finalised within 2 weeks of Old Mutual receiving all the necessary information. In the rare case that Old Mutual needs extra time to establish whether the disability is permanent, the claimant will receive a 100% monthly income until the claim is assessed. This flexibility is provided at no additional charge and, if the claim is payable, the monthly income will not be offset against the lump sum benefit.
Lump Sum Disability is typically structured as part of the Group Life cover. This means that if one claims for disability first, the life cover is reduced by the Lump Sum Disability benefit paid. Although less common, it can also be provided on its own.
This simple but powerful extension of Group Income Protection provides a benefit when an employee is hospitalised in South Africa for three or more nights so that a specialist medical practitioner can treat or diagnose a condition that cannot be dealt with on an outpatient basis.
The benefit is payable from day one, and helps protect against a loss of income and unforeseen expenses that may arise when one is in hospital.
HOW HOSPITAL COVER WORKS
It pays a benefit for each night spent in hospital, up to 30 nights per event and 90 nights per year.
The benefit per night is 1/30 of the monthly disability benefit up to a generous amount per night. If a person earns R10 000 a month with a replacement ratio of 75% the cover is:
• R7 500 a month for disability
• R250 a night for hospitalisation
Other great features
• It’s portable and can be converted to an individual policy when a member resigns
• Less fine print means broader coverage
• No medical testing is required
• Tax free payments
Group Income Protection automatically includes features designed to assist claimants who can return to work:
guidance on work rehabilitation plus some of the most generous financial support in the industry.
• Adapt4Work provides up to 40 times the monthly benefit to sponsor the necessary changes at home and at work as well as further training to facilitate confident return to productivity.
• Back2Work paves the way for a period of adjustment on return to work, by continuing to pay the monthly benefit for three months
MARKET LEADING OPTIONS
• All claimants can access benefits up to 100% of pre- disability income for the duration of the claim
• Escalation up to CPI plus 2%
• Waiting period options range from one to twelve months and can be backdated
• Claimants can continue to save for retirement
• The Retirement Annuity Option invests the employer and employee waivers in a Unit Trust Retirement Annuity in the claimant’s name, if the claimant needs to leave the retirement fund involuntarily
• The Healthcare Contribution Waiver provides claimants with access to healthcare during the crucial rehabilitation phase by covering their medical scheme contributions for up to two years – either at a fixed level for all members or each person’s actual medical scheme contribution up to a maximum amount
• The Early Intervention Service provides a consulting service on claims submission with direct access to our claims specialists
• Conversion Option can also be added to Group Income Protection
GROUP INCOME PROTECTION
Medical Aid waiver
waiting period, fully backdated
100% of Salary Retirement savings CPI+2% escalation
Hospital Cover Maternity Cover Disability Cover
How to stretch your protection
UNIQUE ADD-ON COVER OPTIONS MATERNITY COVER
Employers can now provide female employees with an income that will meet their needs during maternity leave.
Other women and all male employees benefit indirectly, as the employer may be in a better position to appoint temporary staff to help with production pressure in the absence of new mothers.
HOW MATERNITY COVER WORKS
• When adding this cover to the insurance arrangement, employers only need to specify the maximum duration of maternity leave, e.g. four months, and the benefit as a percentage of salary, e.g. 80%
• As with other risk benefits, the price of Maternity Cover is based on the actual membership profile of each group. It takes age, income and gender into account – so there is no charge for men
• To claim, the employer submits a two-page
application form with proof of the employee’s level of income and confirmation of the birth or adoption
• Based on this information, the employer receives a lump sum benefit, which can be used to provide an income for the employee via the normal payroll system