Disability Cover beyond Retirement? It Exists!

insurance disability cover after retirementMany insurance companies offer policies that will pay out a lump sum in the event of disability. These policies are an essential part of everyone’s financial planning strategy, providing crucial funds that can be used to settle any outstanding debts you may have in the unfortunate event that you become disabled and unable to work. Once your debts are settled, the balance of the lump sum payment could be invested to provide an income to cover your monthly expenses.

While the various lump sum disability policies offered by different providers can be assessed by your financial advisor during a consultation, it is important to note that one insurance company in South Africa is now offering an innovative new product: disability cover that extends to the period after you retire.

If you’re wondering what the value of disability cover after retirement is, considering that as a retired person you should have sufficient funds to maintain your lifestyle without working, consider the following scenario:

If you retire with sufficient assets and investments to produce an income that allows you to maintain your lifestyle, you will have done well. However, if you become disabled after retirement you may soon find that your monthly expenses increase drastically. The cost of nursing, rehabilitation, and frail care in the event that rehabilitation is not successful can run into thousands of Rand per day and you may soon find that your retirement income is not sufficient to cover these expenses. The financial consequences for you and your family could be severe.

Fortunately, Liberty Life has an innovative product on the market. In addition to their existing lump sum disability policies, their Whole of Life cover option will protect you from loss of income if you become disabled after retirement. If you would like more information on this policy option, speak to your financial advisor today.

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