14
| pixabay.com
MONEY BASICS
with MARTIN HESSE
The different types of life and disability insurance THE life insurance market is very different from what it was 50 years ago, with a far wider range of choices for the consumer. Although life cover has not changed to any degree, disability cover has become more complex and varied, and dread disease cover is a relatively new addition to the product range. The trouble with greater complexity is that it is more difficult for consumers to compare products regarding value for money and suitability. Group risk versus private cover If you are permanently employed and belong to a retirement fund, a portion of your retirement fund
contribution may go towards group risk cover: life and disability cover for all the employees in your company. The employees are not individually “underwritten”, meaning that each individual is not assessed on his or her particular risks, such as age and health. All employees on the same salary level will pay the same premium, whether they are young or old, healthy or unhealthy. Group life cover is normally a multiple (for example, three or four times) of your annual salary. It’s likely you will need to supplement your group cover with private individual cover.