Now, more than ever, it’s essential to get clients income protection that matches their needs

BY SCHALK MALAN CEO, BrightRock

If 2020 taught us anything, it’s that life can change drastically over a short space of time, and when it does, we need to adapt to that change. This is also true when it comes to insurance. Clients’ needs will change over time – that’s why it’s important for you to get them cover that can precisely match their needs at the start of the policy, and can then change with them as their needs change.

As you know, a client’s most important asset is their ability to earn an income. It’s critical that they protect their income through efficient income protection cover that can protect their future pay cheques.

Temporary disability vs permanent disability

With income protection, you should consider both temporary and permanent disability cover that protects your clients’ pay cheques should they suffer an illness or injury that interrupts their income stream for either a short period or until they would have expected to stop working and actively earn a salary. Temporary disability cover protects against the financial impact of less severe, higher-frequency events, like fracturing a bone, while permanent disability caters to severe, less frequent events, like losing a hand or being diagnosed with stage four cancer.

How income protection fits into your client’s financial plan

If a client suffers a disability, income protection is critical to their financial wellbeing and that of their family. If their income is fully protected in the event of a temporary or permanent disability, it means that a pay-out will see to it that they can meet all their current financial obligations. With an income that’s comprehensively covered, clients will still be able to pay for medical aid, children’s school fees, fund their retirement, continue paying their bond and other debt instalments, and maintain their standard of living. It’s an essential mechanism that holistically supports a person’s financial plan as it makes sure that their other financial goals will still be on track.

Closing the income protection gap

South Africans are underinsured, especially when it comes to income protection. At BrightRock, we believe in helping clients close this gap by enabling advisers to structure their clients’ policies appropriately from the start, thereby giving them cover that can match their needs exactly. This avoids unnecessary waste and helps the client buy as much cover as is needed when they need it most – which is right now.

We also believe it’s important to offer clients flexibility when it comes to their pay-outs. For example, if a client chooses lump-sum cover for their permanent expense needs with BrightRock, they can change this choice to a recurring pay-out at the claim stage, or to a combination of a lump sum and an ongoing monthly income when they have insight into how their condition will impact them.

With the appropriate cover, it’s possible for clients to close the gap and get more comprehensive coverage for their income.

If a client suffers a disability, income protection is critical to their financial wellbeing and that of their family