What's Happening?

Facebook Twitter Youtube Linkedin

NEED HELP? QUESTIONS@FIA.ORG.ZA

become A FIA member TODAY
member login

Secure your greatest asset and get income protection

ARTICLE BY

  • Muhammad Wahab

SHARE THIS POST

Your income is your greatest asset as it allows you to maintain your lifestyle and provide for your family. Imagine the financial stress you would have if you no longer have an income every month. If you are injured or out of work for months or even years, how would you pay for your bills – house bond, car loan, children’s education, insurance – if you are unable to earn a living?

Income protection is salary protection (insurance) aimed at replacing/supplementing your income for unforeseen instances when you are unable to work due to illness or injury. This type of insurance usually covers you in case of sickness, illness, disease, trauma, accident, hospitalisation, partial disability or permanent disability.

According to the Association for Savings and Investment South Africa (ASISA), South Africans are seriously underinsured. Over 14 million families face a combined insurance shortfall of almost R29 trillion should the main breadwinner become unable to generate an income for whatever reason.

However, before you take out income protection, speak to your financial adviser to understand the policy terms and claiming process. Ask questions such as: what financial planning needs do I have and is there a need for this type of product? Are there any circumstances where it wouldn’t make sense to get income protection insurance? What type of income protection plans are available?

In most cases, different insurers use different terms however, most cases follow the below plans, mainly: temporary and permanent plans.

  • Temporary policy – this policy pays out monthly and provides protection for your specific job for up to 24 or 48 months. It helps you to replace any lost income if you cannot work because of a temporary illness or injury.
  • Permanent policy – this policy will pay if you become totally and permanently unable to perform your occupation due to illness or injury. It pays a monthly income until the age you selected when you took out the cover but will not pay out on temporary disability.

It’s important to remember that income protection policies are typically more expensive. This is because they provide you with an income for the rest of your working life, no matter how old you are when you are disabled.

However, one of the benefits of income protection is claims payback from SARS. Should you become temporary or permanent disabled, you can claim back all your premiums that you have contributed towards protecting your salary.

So, consider taking out an income protection as early as you start working because most policies have a waiting period. It can be anything from, three months, 12 months and 24 months. Remember that the shorter you want the waiting period, the more expensive your premiums will be. Sometimes the period you select will determine how much your premiums will be.

Regardless of how much you earn, the simple fact that you earn an income means you qualify for income protection. For help and assistance contact your accredited financial adviser who will help you to fully understand the benefits of income protection or visit our website to find out more.

Subscriber Terms and Conditions

  1. APPLICATION OF TERMS
    • These terms and conditions (“Subscriber Terms”) apply to the subscription by any qualifying member of the South African Underwriting Managers Association NPC (“SAUMA”) to the services and benefits offered by FIA Services (Pty) Ltd (“FIA Services”) under the SAUMA affiliation arrangement (“Subscription”).

  2. NATURE OF SUBSCRIPTION
    • A Subscription under this arrangement:
      • does not constitute membership of FIA NPC;
      • does not confer any voting rights or governance participation in FIA NPC; and
      • is governed solely by the contractual relationship between the Subscriber and FIA Services.

  1. ELIGIBILITY
    • To qualify for the Subscription, the applicant must, at the time of application, be a current paid-up member of SAUMA.
    • FIA Services will verify the applicant’s SAUMA membership status with SAUMA prior to activation, and may re-verify such status periodically.
    • If a Subscriber ceases to be a paid-up member of SAUMA, the Subscription will correspondingly be terminated.
    • Applicants are required to authorise FIA Services to confirm their SAUMA membership status with SAUMA as part of the application process.

  1. SERVICES
    • The Subscription entitles the Subscriber to the following benefits:
      • Complimentary access to the FIA CPD Platform;
      • Complimentary access to the FIA Insight Magazine (digital edition);
      • Advertising opportunities on FIA platforms at a discounted rate of 15% (fifteen percent) off the prevailing published rates; and
      • Invitations to attend FIA Technical Webinars annually.
    • FIA Services reserves the right to update, vary or substitute the Services from time to time, provided that the overall value and nature of the benefits remain materially the same.

  1. FEES AND PAYMENT
    • The monthly subscription fee is R260.00 (two hundred and sixty rand) for up to seven registered individuals (Key Individuals and Representatives), and R36.00 (thirty-six rand) per additional registered individual thereafter, excluding VAT.
    • The Subscriber shall provide FIA Services with the required details of each individual to be registered under the Subscription for the purposes of activation and billing.
    • All fees are exclusive of VAT, which shall be charged at the prevailing statutory rate.
    • Subscription fees are reviewed annually in March and may be adjusted with effect from 1 April.
    • Any changes to the Subscription, including but not limited to the number of Representatives and Key Individuals registered under the Subscription, may only be effected once annually during the annual review period in March of each year, with such changes taking effect from 1 April.
    • Subscription fees shall be billed monthly in arrears, unless the Subscriber elects an annual billing cycle at the time of application.
    • The Subscriber shall ensure that all billing information (including contact details, authorised signatories and bank account details) is kept accurate and up to date.
    • Non-payment of subscription fees may result in suspension of access to the Services until such fees are brought up to date.
    • The Subscriber acknowledges and agrees that all subscription fees payable under these Subscriber Terms may be collected by way of debit order, which shall be processed by the holding company, FIA NPC (The Financial Intermediary Association of South Africa), on behalf of FIA Services. Payment to FIA NPC shall be deemed to constitute valid and sufficient discharge of the Subscriber’s payment obligations to FIA Services under these Subscriber Terms.

  1. ONBOARDING
    • Onboarding will be conducted as a Subscription with FIA Services under the SAUMA affiliation arrangement.
    • Onboarding will not confer FIA NPC membership status or any associated rights.
    • Onboarding is conditional on confirmation of the Subscriber’s current SAUMA membership at the time of application

  1. DATA PROTECTION
    • FIA Services will process all personal information in accordance with the Protection of Personal Information Act 4 of 2013 (POPIA) as set out in our POPIA policies.
    • By subscribing, the Subscriber authorises FIA Services to confirm their SAUMA membership status with SAUMA and to process personal information for the purposes of fulfilling the Subscription.

  1. TERMINATION
    • The Subscriber may terminate the Subscription by giving FIA Services one calendar month’s written notice.
    • FIA Services may terminate the Subscription on one calendar month’s written notice, or immediately if the Subscriber breaches these Subscriber Terms and fails to remedy such breach within 14 (fourteen) days of receiving written notice.
    • Termination of the SAUMA–FIA Services affiliation agreement shall not automatically terminate these Subscriber Terms.
    • Termination by the Subscriber shall not relieve the Subscriber of liability for any subscription fees accrued up to the effective date of termination.
    • FIA Services may suspend or terminate the Subscription with immediate effect in the event of non-payment of fees by the Subscriber.

  1. GENERAL
    • These Subscriber Terms are governed by the laws of the Republic of South Africa.
    • Any disputes arising under these Subscriber Terms shall be dealt with in accordance with the dispute resolution provisions contained in the FIA NPC membership terms and conditions, as modified to reflect that the contractual relationship is with FIA Services.
    • Any notices required under these Subscriber Terms may be validly delivered by email to the addresses provided in the Subscriber’s application form, and such notices shall be deemed received on the day of transmission if sent during business hours.
    • The Subscriber may not assign, cede or transfer any of its rights or obligations under these Subscriber Terms without the prior written consent of FIA Services.
    • No variation of these Subscriber Terms shall be of any force or effect unless reduced to writing and signed by both FIA Services and the Subscriber.