What is policy protection insurance?

If you become injured or are unable to work – would you be able to pay for your insurance premiums, such as medical, gap, life and disability cover? This is where policy protection insurance may come in handy.

Moneybags journalist Danielle Van Wyk, explores policy protection insurance and the importance thereof.

What is policy protection insurance?

“It is an insurance that is taken out for example on your life cover policy, that in the event of something happening like disability or retrenchment on the part of the policyholder, the protection covers the premium itself,” explained Will Keevy, head of insurance for Insurance Busters.

This cover is more commonly referred to as ‘waiver of premium benefits’ in the industry. Petrie Marx, Sanlam’s product development actuary, concurs with Keevy and adds:

“For example, after disability of the life insured i.e. when the life insured is no longer able to work and earn an income, benefits payable in the event of death may remain, in which case the insurer will cover the premiums. Another example: waiver of premium benefits are also available at death. A policy is often structured to cover more than one person, e.g. the policy holder and his/her spouse. A waiver of premium benefit at death may cover the premiums on the remaining life, should one [partner] pass away,” stated Marx.

Who is it available to?

Policy protection should be available as an optional extra on most policies.

“Policyholders need to request this [as an] extra. A lot of people however, are not aware of this extra. While it is the insurer’s responsibility to provide the policyholder with all the relevant information, the policyholder would do well to enquire about this cover,” Keevy notes.

Although it perhaps is not considered a primary form of cover that is typically made use of, ‘it may provide very valuable cover, to maintain premiums and keep a policy intact when a breadwinner becomes disabled or passes away,’ explains Keevy.

The importance

The necessity of having this class of protection is becoming more relevant in increasingly harsh economic climates. People are needing to make sure they are covered as far as possible in certain events.

“Such would be considered a crucial component of any financial plan,” highlighted Nicholas van der Nest, divisional director of risk product innovation at Liberty.

Who are the top providers?

Most medical schemes as well as medical gap cover provider companies offer this insurance as an extra on their products.

“Life insurance companies offer it as part of the product while gap cover and medical schemes often offer cover on the medical aid premium as an extra product in itself,” says Keevy.

“The cover is usually not available as a free-standing facility. There are generally therefore no top providers as such,” explains van der Nest.

Cost

The cost of this cover is product specific and depends on the policy provider or insurer. “The cost is also based on the monthly premium paid by the client and their age,” explains Keevy.

The cover is therefore typically expressed as a certain percentage of the amount of premium that is covered, Marx explains.



Seasons are changing and with it the increased chances of snotty noses and chest infections. But some people believe that with a tiny prick you could avoid a trip to the doctor this season. There are however many misconceptions around the flu and its vaccine. As in any medical case, seeking trusted sources and facts behind common assumptions and practices is especially important. Let’s see if you have all your flu-facts straight with these myths and truths.

Shoprite/Checkers Student Discount

Download the Spree app and get a discount on your first in-app purchase

star Surprise your loved ones with the Spur 4 Burgers 2 Go combo. Buy 4 burgers and 330ml of Coke served with chips and onion rings for only R275.

Picking up and being able to travel on a whim is everyone’s dream, right? Whether it’s to the ancient pyramids in Egypt or the endless white beaches and blue waters in Sardinia, the luxury and ease of it all just appeals. But, you’ve decided to explore the prospect of parenthood. And while you can’t wait for the ‘joy’ that comes with it, there are a few must-sees before you take the parenting plunge.

star Treat your friend to lunch at Slug n Lettuce at half prices.The pub is offering a 50% discount on all burgers between 12pm and 4pm.

star Celebrate your birthday on top of Table Mountain. The Cableway offers you a free return ticket to one of the world's wonders to make your day extra special.

Wake up. Create. Film. Edit. Repeat…and…get paid for it! Dream job, right? Well, it could be. With YouTubers like Lilly Singh aka Superwoman coining something stupid like $10 million (R 117 588 500,00) just last year, nearly everyone is trying their hand at it.