Why you need To provide Income Continuation for your employees
The risk cover pays a member a monthly salary if a member becomes disabled and cannot work to earn a monthly income. The benefit pays up to 100% of a member's monthly salary until retirement or death, whichever comes first.
Disability is one of life’s great unknowns. We always think that a life-changing event will happen to someone else, but we face moments every day that can disable us, such as being injured in a car accident on the way to work or falling down a staircase and breaking an arm or leg.
Most of us haven’t considered what it would be like, nor how we’d cope with a disability, whether temporary or permanent. As parents and breadwinners, we should be giving this more thought and looking at ways to protect ourselves and our families. So, what is your most valuable asset?Is it your house? Your car? It is none of these things, really. Your most valuable asset is your ability to earn an income during your working career.
But have you ever stopped to think about what would happen if you suddenly lost your ability to earn an income and you could no longer work? How would you pay your mortgage, the kids’ school fees, groceries, car instalments? How would you maintain your lifestyle if your income reduced or stopped coming in completely?
Disability is one of life’s great unknowns. We always think that a life-changing event will happen to someone else, but we face moments every day that can disable us, such as being injured in a car accident on the way to work or falling down a staircase and breaking an arm or leg.
Most of us haven’t considered what it would be like, nor how we’d cope with a disability, whether temporary or permanent. As parents and breadwinners, we should be giving this more thought and looking at ways to protect ourselves and our families. So, what is your most valuable asset?Is it your house? Your car? It is none of these things, really. Your most valuable asset is your ability to earn an income during your working career.
But have you ever stopped to think about what would happen if you suddenly lost your ability to earn an income and you could no longer work? How would you pay your mortgage, the kids’ school fees, groceries, car instalments? How would you maintain your lifestyle if your income reduced or stopped coming in completely?
The following benefit options are included in the income continuation benefit:
- The employer can also choose to add on to this benefit. These include:
- Employer waiver: This benefit will continue to pay the disabled employee’s risk premiums and pension fund contributions
- Medial aid waiver: This benefit will continue to pay the medical aid premiums when an employee is disabled
- Escalation benefit: An employee’s disability income will increase by a specific percentage as requested on the quotation or by inflation.
In summary, income continuation benefits are an essential component of a comprehensive employee benefits package. They provide financial protection, promote employee well-being, and contribute to a positive workplace culture. Employers should carefully consider the needs of their workforce and the legal requirements in their region when designing and offering income continuation benefits.
What Our Customers Are Saying
MGC Mining
NTHETHE KOTELE - Provident Fund Management Committee Chairperson
Continuous Improvement is what I admire the most about Alliance Employee Benefits, and is by far its biggest strong point. Its ability to solve problems will and shall forever be what makes it income, or in this case keeps and gives it more clients.
World Vision Lesotho
Lieketseng Makoko, People & Culture Associate Director
The Employee Benefits team is always available to provide technical advice and guidance as and when it is required; Responsive with regular feedback on our submissions and is able to meet turnaround times for Terminal Benefits Claims. We are proud to have invested employee’s proceeds through a locally registered Administrator like Alliance
Additional Resources
Beneficiary Nomination Form
Employer Application Form
Group Funeral Registration Form
Know Your Customer Form