Pandemic boosts demand for income protection insurance
The economic effect of Covid-19 has given consumers a new appreciation of a regular flow of money
FMI, a division of Bidvest Life that specialises in income protection and disability insurance, says the Covid-19 pandemic has boosted demand for such products as it has reinforced the need for consumers to ensure they have adequate cover to pay for expenses in the unexpected event that they are unable to work due to short-term illness or incapacitation.
The Durban-based insurer says 62% of its in-force insurance book is for disability income insurance, 24% is for life cover and the remaining 14% is for disability lump sum and critical illness cover. FMI favours policies that pay out in the form of income rather than lump sums as it believes providing clients with a continued earnings stream is preferable to a large cash windfall in the event of a claim...