How to effectively protect your income

DISABILITY insurance is a complex and technical area of financial planning that requires more than a cursory glance at your policy wording.

- SHERRY TAPFUMA

With ever-evolving product designs, technical definitions, and a growing number of insurers entering the market, navigating this area can be particularly challenging. As disability awareness takes focus this month, it's an ideal time to reassess the adequacy of your cover and ensure it aligns with your current lifestyle and financial position.

Start by assessing your risk exposure: Your risk of disability is not static. Life circumstances—debt levels, family responsibilities, career progression, and health status—change quickly and often without much notice. When reviewing your cover, consider what risks you face if a temporary or permanent disability prevents you from working.

Would you be able to meet your financial obligations? Have your expenses escalated since you last updated your policy? Are you the sole breadwinner or reliant on variable income? In addition to economic considerations, factor in lifestyle and occupational risks, such as frequent travel, physically demanding work, or participation in high-risk hobbies. A clear understanding of your exposure will help you determine how much cover is needed and in what form.

Understand what cover you currently have: Once you've identified your risks, take stock of your existing disability cover, both personally and through your employer's group scheme. Carefully check what definitions apply. For example, some policies offer cover only in the event of accidental disability, which excludes any illness-related claims such as those arising from cancer, heart disease, or stroke.