When most people think about financial planning, they focus on growing wealth through investments, paying off debt, and saving for retirement. Life cover often features in the conversation too, but disability insurance is sometimes overlooked. This is a costly mistake. Disability cover is a vital safety net that protects not only your income but also the financial stability of your entire household.

Why Disability Cover Matters

Ask yourself: what is your biggest asset? Many people would answer, “my home” or “my car.” In reality, your income is the asset that makes everything else possible. Without it, the house, the car, and the lifestyle you have built can all quickly become unaffordable.

Consider this example. At age 30, you earn R40,000 per month. If a disabling illness or accident leaves you unable to work, you stand to lose 35 years of future income — that’s R16.8 million without even factoring in annual increases. Few people have savings anywhere close to that amount, which is why protecting your income with disability cover is so critical.

Even a short period away from work can drain savings, disrupt debt repayments, and delay long-term goals. In severe cases, the loss of income can be permanent, forcing you to rethink your entire lifestyle. Disability insurance provides a payout if you become unable to work due to a qualifying condition, helping you maintain your quality of life and keep your financial plan on track.

Income Protection and Lump Sum Cover

Disability cover can be structured in different ways. The most common are:

• Income protection: replaces your monthly earnings so you can maintain your lifestyle and continue meeting commitments such as school fees, bond repayments, or retirement contributions.
• Lump sum cover: provides a once-off payout to cover large, once-off expenses such as home modifications, vehicle adaptations, or advanced prosthetics.

Both have an important role to play. While income protection ensures your day-to-day living costs are covered, lump sum cover helps you adapt to the new reality of living with a disability. For example, prosthetic devices and home alterations can be extremely expensive, but they are often life-changing in helping you remain independent.

A well-structured plan will usually include a combination of the two, tailored to your age, career stage, and obligations. If you are just starting out in your career, income protection is vital because you have decades of earnings ahead of you. If you are more established, lump sum cover may be especially important as you balance significant financial commitments.

Linking Disability Cover to Life Insurance

Life insurance protects your family if you are no longer there to provide for them. Disability insurance protects you, and by extension them, while you are still alive but unable to work. In many ways, it is just as important as life cover because the financial impact of living without an income can be as severe as the loss of a breadwinner. Together, these two forms of cover create a more complete protection plan that ensures both immediate and long-term security.

Supporting Your Retirement Plan

Retirement planning relies heavily on a steady income during your working years to fund pension contributions, investment accounts, and other savings. A sudden disability can interrupt this flow, potentially creating a shortfall in your retirement fund. With disability cover in place, the payout can be used to maintain contributions or replace lost income, keeping your retirement plan on course. Without it, you may be forced to dip into retirement savings early, compromising your financial future.

Covering Day-to-Day Expenses and Debt

For most South Africans, monthly commitments like bond repayments, vehicle finance, and school fees leave little room for financial setbacks. Disability insurance provides an ongoing benefit or a lump sum that can be directed toward these expenses, helping you avoid defaults and the long-term damage of bad credit. It also helps protect your family from the emotional stress of drastic lifestyle changes that can follow a sudden loss of income.

Planning for Medical and Lifestyle Adjustments

A disability often comes with additional expenses such as medical treatments, rehabilitation, assistive devices, or even home modifications. These costs can be substantial and are often not fully covered by medical aid. Disability cover bridges the gap, ensuring you can access the care and support you need without jeopardising your other financial commitments.

Keeping Your Financial Plan Resilient

A strong financial plan is about resilience. By including disability cover, you are preparing for one of the most significant living risks you might face. The right cover will ensure that your savings, investments, and long-term goals remain intact even if your earning capacity changes unexpectedly.

Choosing the Right Disability Cover

Every individual’s needs are different. Factors such as your age, occupation, health, and existing financial obligations will influence the amount and type of cover you require. A professional financial adviser can help assess your specific risks and recommend a balance between income protection and lump sum disability cover that fits seamlessly into your overall plan.

Candid 20 Twenty takes a holistic approach to financial planning, ensuring your protection strategies are aligned with your life goals. Disability cover is not just an insurance product — it is a cornerstone of a well-rounded financial plan that supports both your present needs and your future ambitions. Let’s have that candid conversation about how to protect your income and your lifestyle.

Partnering with Candid 20 Twenty means choosing a team with decades of combined expertise in financial planning, risk management, and wealth protection. Led by Shirley, a CERTIFIED FINANCIAL PLANNER® and FIDUCIARY PRACTITIONER OF SOUTH AFRICA®, we bring over 25 years of dedication, insight, and award-winning service to every client relationship. Our approach is built on open, honest conversations that give you 20 Twenty vision for the road ahead. Whether you are building your wealth, safeguarding your family, or planning for retirement, we are here to light the way.