Who will take care of you if you cannot?
If you are unable to take care of yourself because of an illness or injury, who will take care of you? Will your spouse have the time? Will you be able to afford a private nurse?
If not, then you should consider the value of impairment benefits.
What is impairment cover?
Impairment cover protects you against the long-term financial impact of permanent illnesses or injuries such as paraplegia, blindness and dementia.
The claim approval criteria are stricter than those of critical illness benefits, which generally pay out on diagnosis of an illness, whether the condition is permanent or not. Impairment benefits require the illness to cause a permanent impairment.
Why you need it
If you are not able to function independently, impairment cover helps you to do the following:
- Make lifestyle adjustments, such as modifying your house or car.
- Provide for additional ongoing expenses, such as the cost of a private nurse or a frail care facility.
Myriad offers the following two impairment benefit options:
- Functional Protector - pays a monthly amount for the rest of your life if you become severely impaired. It offers affordable provision for private nursing that will not run out, no matter how long you live. This benefit can provide you with an initial income of up to R27 500 per month.
- Complete Functional Protector - pays a monthly amount for the rest of your life if you become moderately to severely impaired. It offers affordable provision for private nursing that will not run out, no matter how long you live. This benefit can provide you with an initial income of up to R40 000 per month.
- Functional Impairment Benefit - pays a tax-free lump sum if you become moderately or severely impaired. It is ideal to provide for modifications to your home or car and other once-off expenses.
Critical illness cover is relatively expensive, as it generally pays out on diagnosis and people claim fairly easily. An impairment benefit only pays out if a condition is permanent. For this reason, impairment benefits cost far less than critical illness benefits. The ideal solution is to combine critical illness and impairment cover. While critical illness benefits are ideal for short-term expenses, impairment benefits are a cost-effective solution for longer-term expenses.
Generally, you should make your decision based on affordability, but here are some guidelines to consider:
- Do you want to make provision for private nursing? A full-time private nurse or frail care facilities could easily cost up to or more than R20 000 per month.