The importance of disability insurance

WINDHOEK, 1 AUG – Accidents, dread diseases, heart attacks, diabetes and depression are but some of the realities of life today. “If you, as consumer have little or no disability cover in place you could face financial difficulties in the unfortunate event of any type of disability,” says Ian van der Walt, Channel Head: Advisory at FNB Namibia.

While many consumers might have a disability cover, there is also unfortunately always the question whether the cover will be sufficient for the affected person to continue living comfortably.

“Most people who take out life cover mistakenly view disability insurance as an additional and unnecessary grudge purchase, until something tragic happens to them. Moreover, if you have a particular disorder that runs in your family and that could potentially lead to some form of disability; it is all the more reason why you need this type of cover.”

Ian explained that although life insurance ensures that loved ones are taken care of financially one also needs to consider what would happen if you became disabled and have no income to take care of yourself and those who are financially dependent on you. “The reason why consumers get it so wrong when it comes to disability cover is not being informed enough to realise the significant impact.”

He added: “For example, if you suddenly have a stroke, are permanently disabled and can no longer work or take care of yourself, you may find yourself financially stranded. Even if you do have cover through your employer, it may not be enough. Alternatively, if you are to experience back problems and couldn’t work for a period of six months or more you may need income to cater for the financial shortfall.”

Ian says a common misconception held by consumers is that disabilities are usually work related and would normally be covered through the Workers Compensation Fund set up by the Government. The danger with this notion is that many disabilities can occur outside of work leaving you and your family uninsured.

“When considering the future wellbeing of your loved ones, it is important to strike the correct balance between life and disability cover, and the amount of cover needed depending on your individual needs. – NDN Staffer