Ask most people about the importance of life insurance and the majority will agree that it is a necessary part of a financial plan. When the topic of disability is raised, it appears to be the poor cousin.

So here is the lowdown – your chances of being incapacitated by an injury or illness, are four to six times greater than dying. So why do we shun this vital product? The short answer is that most people do not understand the risks and they do not understand how the policies work.

 Here are some statistics to ponder:

  • You stand a 1 in 8 chance of being disabled before age 65
  • Just one year of disability can cost 10 years’ worth of savings
  • Males are twice as likely to suffer a disability than females
  • More homes are repossessed as a result of disability than death
  • Disability rates have more than doubled in the last 20 years
  • Around 10 percent of the world’s population, live with a disability
  • In South Africa, only 25 out of every 10 000 people who are afflicted with a disability are rehabilitated and return to work

So you need to answer this question. “Would it make a big difference to your standard of living if you lost R500 per month in your income? Probably not. “Would it make a big difference if you lost R20,000 per month? For sure! It makes sense to invest in a disability policy because the odds of having your income wiped out by an injury or illness are just too high. There are a number of different policies available, so do some research and compare products before you commit.