Disability coverage to close the gap

Against the background of the economic crisis of the last few years, it is no coincidence that employers are concerned with a likely increase of disability claims. These concerns are not unjustified as many empirical studies validate the increase in disability claims during periods of economic downturns.

There are usually dramatic financial consequences when people become unable to work due to accident or illness. Suddenly they become dependent and turn to the state with all sorts of questions: When will I get payments? How much will I get? How long can I receive financial support for? At this point, they also need to know what their employer will provide. Given the ongoing war for talent and the need for corporate reputation management, this is a topic that responsible employers are paying far more attention to.

The technical conditions for receiving financial support in case of disability are specific to each country, with variations in the levels of disability acknowledged, and the amount and duration of benefits subsequently paid out. Let’s take one example: Luxembourg.

Luxembourg

To qualify for state benefits in Luxembourg, the disabled individual must have paid contributions for at least 12 months during the preceding three years before the occurrence of the insured event (except in the event of disability caused by accident). This is a particularly significant regulation in a country that has many foreign employees in its workforce.

The amount paid out depends on the level of disability, but also on the person’s career and years of employment within Luxembourg. The longer the person has worked in Luxembourg, the more he or she will receive in state benefits, and vice versa. This means that “newer” employees with only a few years of working in Luxembourg will be missing contributions, and thus receive very low and thus insufficient benefits.

When talking to its corporate clients, Swiss Life identified a strong need to close this gap with a solution that complements social security disability benefits and provides a guaranteed targeted overall salary replacement income (70% for example, for total disability). Swiss Life’s new disability solution is specifically designed to ensure that employees coming from abroad are not disadvantaged by their short working careers in Luxembourg should they become disabled.

Faster payout

Swiss Life’s solution starts with the disability assessment done by the state. In the majority of the cases Swiss Life agrees to follow this decision, and as a result insureds do not have to undergo a separate examination by the insurer, and only need to see one doctor. This in turn allows payments to be made much faster, sheltering the beneficiary from a long period of uncertainty and loss of income.

Financial security

In Luxembourg, state payments in case of disability are linked to the length of the individual career in the country. Swiss Life then steps in and closes the gap with its complementary solution, which is salary linked, meaning that the insured’s overall disability income is a fixed percentage of their previous salary at the time of the claim.

Advantages

Swiss Life Luxembourg’s approach offers numerous benefits, as it:

  • Closes the gap in benefits for the insured
  • Provides financial security in the event of disability
  • Does not require further medical check-ups
  • Removes an impediment to attracting and retaining talent from abroad
  • Involves less administrative work for employers and insureds 
 
 
 

Momentum’s latest innovations: new death benefits for employees

Momentum is continually striving to improve its offering to meet the needs of a world experiencing rapid growth and change. With a combination of meticulous research and creative thinking, it finds ways to turn great benefits into exceptional ones. Momentum is now proud to introduce its significantly enhanced Funeral Benefit, and brand new Children’s Education Benefit.

Funeral Benefit – increased benefits beyond direct funeral costs

In response to the rising costs and expanding needs of members and their families who face the painful experience of burying a loved one, Momentum has increased its cover and is making broader options and benefits available. Highlights of the newly enhanced Funeral Benefit include: 

  • Memorial Benefit: an additional pay out to commemorate the deceased up to 12 months after the Funeral Benefit has been paid.
  • Debt Relief Benefit: financial assistance for minor household debts that will still be paid even if the family is debt-free.
  • Inkomo Benefit: a sum to cover the cost of livestock or any other traditional ceremonial requirements, payable regardless of the member’s traditions or requirements.
  • Funeral Transport Benefit: an additional payment that can be used for transport costs or any other funeral arrangements.
  • Airtime Benefit: an optional extra that provides a sum to pay for airtime needed to organise the funeral. 

Children’s Education Benefit – safeguarding a successful education

This brand new risk product has been developed to cover tuition and many peripheral costs involved in educating members’ natural and legally adopted children in the event of the parents’ death. With cover extending from pre-primary school to tertiary education at recognised South African institutions - and even top international universities - for an unlimited number of children, this product is the ultimate reassurance that children’s education is secure. Highlights of the Children’s Education Benefit include:

  • Tuition Benefit: based on the child’s tuition fees in the year of the member’s death, this benefit offers generous allowances for annual increases and also covers increased costs incurred when the child changes school or education levels.
  • Education Booster Benefit: this benefit is paid out over and above tuition costs in order to cover books, uniforms and other expenses. It is calculated as a percentage of the actual fees, and the full amount is paid out regardless of how much was spent.
  • Education Bonus Benefit: should a beneficiary receive a bursary or other fee exemption, they will be rewarded with 40% of that bursary or exemption amount paid directly to them.
  • Gap year after school allowed
  • 44 prestigious international universities covered
  • No underwriting is required 
 
 
 
 
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