Disability insurance is one the most complex types of insurance and therefore it’s vitally important that the differences between the types of cover is carefully explained. This will ensure that the correct cover is taken out according to your clients needs and financial circumstances. 

 

Income protection provides a safeguard against the loss of income, which is based on the inability to perform stated occupational duties. Functional impairment insurance uses a medically defined approach, which pays out a benefit based on lost bodily function and the proportion of the loss in relation to the rest of the body.

For more information about FMI’s claiming philosophy and our income protection products, please contact our Financial Advisor Distribution team on 0860 10 52 08, email sales@fmi.co.za or alternatively visit www.fmi.co.za.

 

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What is a functional impairment?

An impairment is any loss of function or structure of a body part. Impairment includes deviation from the normal functional abilities of an individual due to an accident or illness.

 

Assessment of a functional impairment claim

Functional impairment is assessed according to medical criteria, after diagnosis and appropriate treatment has been administered. Impairment benefits insure against the loss of a certain function and not the inability to earn an income, therefore the claim event is not linked to the ability to perform occupational duties. The different degrees of impairment will produce different levels of incapacity and will be measured against ability to perform certain basic functions. Therefore in assessment of a functional impairment claim, not every claim will receive a benefit payout due to the severity of the impairment.

 

What is a functional impairment benefit used for?

· To provide for the costs and lifestyle adjustments associated with living with the impairment.

· Specialised care and equipment.

 

What is a disability?

A disability is any restriction to perform an activity in the manner considered normal for a human. The disability prevents a person from meeting their daily employment duties due to their functional impairment and can mean a significant loss of income, through being unable to fulfil job requirements.

 

Assessment of a disability claim 

FMI’s disability definition is defined by the claimants’ inability to perform the duties of their stated occupation, not their loss of income. Our claims are assessed strictly according to this definition and based on a legal decision, substantiated by sound medical information.

 

What is a disability benefit used for?

FMI’s income protection is suited for small business owners, whose staff, family and business will face financial crisis in the event of  incapacitation. This includes:

· Piece of mind that a healthy standard of living can be maintained for the individual and their family.

· Cover for business running expenses.

· Protection of an insurance portfolio, including medical aid.

· Provision for a replacement of incapacitated staff.

· Supplementing existing provident fund benefits.