Salary Protection Insurance for South Africans

Money becomes a huge worry when you’ve lost your job. South Africa has a persistently high unemployment rate and you cannot afford to lose your income. Unemployment has increased  significantly since the African National Congress came to power in 1994. Mental problems have increased as a result. Salary protection insurance is therefore vital.

Without a salary you can’t pay any medical bills. Salary protection insurance is useful for anyone wanting to cover their salary so they don’t fall behind with their monthly bills. With salary protection insurance you can at least ensure your  financial well-being for when you aren’t receiving a salary because of illness or retrenchment.

There are more than 1.2 million self-employed business people in the country. There will be serious financial problems if a business owner can no longer work. If there is no-one to continue the work they do, no work is no pay. Self employed people need to particularly consider income protection insurance.

What is Salary Protection Insurance?

Salary Protection InsuranceThere is various income protection insurance South Africa. The two most common kinds of salary protection insurance are  temporary and permanent protection plans with different benefits. Salary Protection Insurance is the same as ‘Permanent health insurance’ (PHI). Salary Protection Insurance doesn’t cover redundancy.

To benefit from Salary Protection Insurance cover you need to have a full time job or be self-employed. Some income protection policies only cover you if you become severely disabled. Some policies may only pay out for permanent total disability. This is why is is so important to understand exactly what policy you are getting.

A temporary plan offers benefits for a short period of time while the permanent protection will continue until the time of retirement. The type of job you do will affect your premium because you job may be considered risky. There are other kinds of salary protection policy’s such as the Disability Income Protection plan, Life Insurance and Travel Insurance as well as Serious Illness protection plan.

If you are the breadwinner, having protection for the money you earn is wise. This salary protection insurance can help you protect your valuable asset so that you can still pay your monthly bills. Frank Salary Protection offers life cover, disability cover, serious illness cover and salary protection to their customers. They will make monthly payouts of up to 75% of your monthly salary to a certain amount each month.

Regent Insurance offers you their Lifestyle Protection Plan. This retrenchment benefit pays out a monthly installment if you are retrenched before 69. Their Income protection in the event of an accident will include a monthly payout for up to 12 months as long as you are under 65.

How do you get Salary Protection Insurance?

You can get income protection cover by joining a scheme at your workplace. You can also take out an individual policy. There are online quote platforms that provide South Africans with the best quotes from leading insurance companies and insurance brokers in South Africa.

Who offers a Salary Protection Plan?

Some banks and many South African insurance companies offer Income Protection products. Do research  and take salary protection insurance which replaces 100% of your income if you cannot work. Not every Income Protection products allow for this level of cover. They focus on other  benefits rather than income replacement.

Your number one priority with salary protection insurance is to make sure that 100% of your income will be replaced in the event of an illness or injury.  Nobody these days can afford nice-to-have benefits – they need benefits that work hard to get them through a sticky period in their lives.


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All info was correct at time of publishing