Product Overview Series – Lump Sum Disability

Product: Pays out a lump sum amount should the member become totally and permanently disabled.

Particulars:

  • Available until the earlier of the Normal Retirement Age and age 65
  • Accelerates the Group Life Cover
  • Can be converted to an Individual Life Policy with existing insurer (if option selected and criteria met)
  • Conversion option is available 5 years prior to benefit cessation age (Capital Alliance & Hollard),10 years prior to benefit cessation age (Old Mutual) & up to age 60 (Sanlam)
  • Waiting period – 6 month (Capital Alliance, Hollard & Sanlam) and Old Mutual has no waiting period
  • Tapering Period – 5 year (Capital Alliance, Hollard & Sanlam) and Old Mutual apply a benefit maximum calculation rather than tapering the cover over a set period
  • Aggregation of benefits applies if Disability Income Benefit is also selected and the maximum Lump Sum Disability allowed will be limited

Current Maximums:

  • Capital Alliance – 10 x annual salary or R8.5m
  • Hollard – 5 x annual salary or R6m
  • Sanlam – 8 x annual salary or R10.5m
  • Old Mutual – 5 x annual salary or R8.5m

Thank you and regards,
The TSA Team

You’ll find all back issues of TSA Connect by visiting our blog.

All information provided is intended to inform and explain, but please remember to always check the current terms on policies when considering options and advising clients.

(TSA Connect Vol. 7 Issue 19)
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