FMI

For the last 22 years, FMI in South Africa has offered a range of insurance products that go beyond industry norms and seek to incorporate an all-inclusive attitude when it comes to identifying those that need insurance.

Focusing on income protection insurance, FMI has created a space where not only professionals but also self-employed individuals can receive a cover with FMI individuals. A belief that all South Africans should be able to protect their income no matter what industry they belong to, FMI has introduced cover for previously un-insurable occupations and allowed for up to 250 additional occupations to receive cover within the South African market. 

Income protection plans

FMI developed two versions of the FMI Individual Comprehensive cover and Event Based cover. In 2015, FMI introduced Event Based cover to accommodate occupations that couldn’t previously qualify for comprehensive injury and illness cover. With FMI Individual, one’s occupation will determine which cover they qualify for.

The difference can be seen in how the benefits work when it comes to paying an injury, illness or disability claim.
The critical illness and life cover benefits are the same across both versions. Furthermore, FMI Individual allows one to increase or decrease their cover in the future without hassle.

FMI’s Individual Income Protection in South Africa offers cover for three categories of risk described as disability cover, critical illness cover, and life cover.  

For each category, there are income benefits and lump sum benefits.

Income benefits  

1. Disability Cover- This cover is offered on a short-term or long-term basis and replaces 100% of one’s monthly income in the event of any injury or illness.
2. Critical Illness Cover- This cover replaces 130% of one’s income, which allows for extra monthly expenses that result from coping with a critical illness.
3. Life Cover- This cover pays one’s dependents in the event of death.

Lump-sum benefits

1. Disability Cover- This cover provides for once-off expenses associated with adjusting to and living with a disability.
2. Critical Illness Cover- This cover provides for extra expenses that come with treating a critical illness.
3. Life Cover- This cover will settle one’s debts and provides for any immediate expenses that any loved ones may face, such as estate duty or funeral-related costs.

Income protection insurance benefits

While lump sum payouts can cover large payments and debts, the running of a house and lifestyle requires finances in the form of a monthly income. FMI’s income protection insurance plan removes the risk of lump-sum payouts by offering the following benefits: 

• One does not need to estimate the lump sum amount that is needed to provide a future income.
• One does not need to be concerned with investing a large amount of money and calculating the tax implications of investment returns.
• One does not need to be concerned about the impact of inflation or running out of money before the time of death.
• One is less tempted to spend large amounts of money on luxurious items that are not necessary and only place one in future financial strain.
• Income benefit premiums are more cost-effective than purchasing insurance for the lump sum equivalent.