nottheaverageactuary

Actuarial news and views from Cape Town and beyond

Critical illness vs Income protection

1 Comment

Here is a link to what I thought is a useful comparison between income protection and critical illness. It is UK based, but the general idea still holds.

https://www.moneyadviceservice.org.uk/en/articles/critical-illness-or-income-protection-insurance

Enjoy. Daron

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One thought on “Critical illness vs Income protection

  1. I like the format of the comparison!

    I’d say main differences to SA:

    Critical Illness:
    The number of times you can claim (under certain SA policies you can claim more than once, this would be true for tiered benefits and / or unrelated illnesses).

    Income Protection (or Disability Income):
    Tax treatment, disability income benefit is taxed as income (the benefit amount received thus added to other income you might receive and taxed according to the income tax scale.
    Though!! This seems set change soon! Premiums towards a Disability Income policy used to be tax deductible, and the proceeds taxed as income, latest is that from 1 March 2015 premiums will no longer be tax deductible, but benefits will be tax-free!! Impact on insurance current and future Disability Income business an interesting discussion..

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