Retrenchment - Income Protector

[air]

Morning All

Looking at getting the above cover (2016 may be an bsolute bugger) - insured person does not have a degree, not a PPS candidate.

Can one get a standalone product without have to take out life insurance?
Any 'real world' experience with these products?
Can you recommend one that does stand out versus the rest?

thanks in advance
air

 

[supersunbird]

Morning All

Looking at getting the above cover (2016 may be an bsolute bugger) - insured person does not have a degree, not a PPS candidate.

Can one get a standalone product without have to take out life insurance?
Any 'real world' experience with these products?
Can you recommend one that does stand out versus the rest?

thanks in advance
air

I have a policy with frank.net, it has some life cover component (they don't sell the retrenchment cover alone) but I care little for that part and view it as retrenchment cover. My premium cost is about R10pm for every R1000 covered (so R15 000 salary cover would cost R150pm)

Pays out for up to 6 month. 6 months waiting period from when you start the policy.

Mr Price Money also has something

https://www.mrp.com/en_za/fs/financialservices.jsp

360 Degree Protection Plan
Death, retrenchment, critical illness and hospitalisation

Benefits
R10 000 cover in the event of:
•Death
•Retrenchment
•Certain critical illnesses
•Hospitalisation for 14 or more consecutive days

R41.00pm

So R10 000 once off for those events, for a measly R41pm. I forgot about it till you asked, I must try to take that out.

 

[air]

thanks ssb!

from https://www.frank.net/product/salary-protection - one thing that jumped out for me --> WHEN YOU GET PAID.

The monthly payouts will start three months after your last payment from your employer. - this is separate to the 6 month waiting period before being able to claim - 3 month versus 1 month to other 'vendors'

 

[MeroD]

Had the same at my previous company, but ended up paying for five years for absolutely nothing.

I was fully employed at said company with all benefits, but when things suddenly went south, the company forced us to sign new contracts that get reviewed on a month to month basis. Two months later my employment ended and I basically lost all the benefits I saved up over the years. And when I tried to claim from the insurance they said I can't since I was on 'contract' and not full employment. I was lucky enough to claim three months unemployment benefits waiting in a very long line...

 

[supersunbird]

True, but technically the people in the know says one should have about 3 months salary savings (or maybe a credit card worth that much kept for then, use the frank.net payments to repay that, one should obviously downscale, kick that dstv to the curb and whatnot as soon as one is retrenched and stretch the money out, minimise the credit on credit card)

 

[supersunbird]

Oh yes, UIF, that's something, will pay one out about max R4500pm if I remember correctly.

 

[MeroD]

True, but technically the people in the know says one should have about 3 months salary savings (or maybe a credit card worth that much kept for then, use the frank.net payments to repay that, one should obviously downscale, kick that dstv to the curb and whatnot as soon as one is retrenched and stretch the money out, minimise the credit on credit card)

+1

I was stupid and learned a very hard lesson. At least now I have enough money put away in case I end up between jobs again. Never again will I rely on 'insurance' or UIF to bail me out.

Edit: Kicking the DSTV habit has put R14 000 in that account over the last two years

 

[Other Pineapple Smurf]

+1

I was stupid and learned a very hard lesson. At least now I have enough money put away in case I end up between jobs again. Never again will I rely on 'insurance' or UIF to bail me out.

Edit: Kicking the DSTV habit has put R14 000 in that account over the last two years

I've been employable too many times in my life and have my savings as my backup now. Never had the luxury of being more than 1 week unemployed so UIF and retrenchment insurance is of no help to me.

Also dumped a whole lot of silly things and already have a nice safety nest.

 

[Billy]

Do not forget that if you are retrenched, you can claim UIF payments. Not great, but every little helps.

 

[MeroD]

Do not forget that if you are retrenched, you can claim UIF payments. Not great, but every little helps.

If your willing to brave the long lines. Tip: Arrive at 4am, and oh, don't eat or drink anything beforehand

 

[twaatie]

Had the same at my previous company, but ended up paying for five years for absolutely nothing.

I was fully employed at said company with all benefits, but when things suddenly went south, the company forced us to sign new contracts that get reviewed on a month to month basis. Two months later my employment ended and I basically lost all the benefits I saved up over the years. And when I tried to claim from the insurance they said I can't since I was on 'contract' and not full employment. I was lucky enough to claim three months unemployment benefits waiting in a very long line...

next time just do it online , that's what we have being doing for the wife

 

[deweyzeph]

I've always had the impression that income protection insurance is a waste of money verging on being a con. Too many terms and conditions, expensive, and difficult to claim for.

 

[akescpt]

I've been employable too many times in my life and have my savings as my backup now. Never had the luxury of being more than 1 week unemployed so UIF and retrenchment insurance is of no help to me.

Also dumped a whole lot of silly things and already have a nice safety nest.

dude you should create a thread. you have some good hints and insights for normal folks to get more financially secure. think about it.

 

[JayM]

True, but technically the people in the know says one should have about 3 months salary savings (or maybe a credit card worth that much kept for then, use the frank.net payments to repay that, one should obviously downscale, kick that dstv to the curb and whatnot as soon as one is retrenched and stretch the money out, minimise the credit on credit card)

^ 'Emergency fund' is personal finance 101. I'm shocked that so few people have even heard of the concept.

3-6 months' expenses (not salary) is recommended. Liquid savings are better then credit as your bank can revise your credit limit at any time, and is most likely to do it when you need it the most.

 

[Matol]

I had salary protection insurance with Frank.net for 1yr3mnths. When I was retrenched I learned a hard lesson with Frank.net.
First of all they request all kind of documents as if you are applying for the job.
2. They go back to your employer to request the same documents you requested from your employer.
3. They delay on purpose to process your claim.
4. For a period of amonth they tell you that your claim is being evaluated.
5. Another two/three weeks they tell you the evaluation committee still making a decision.
6. They then find a reason not to pay you.

Frank.net is a scam, becareful black nation.

Never take salary protection with Frank.net

 

[supersunbird]

I had salary protection insurance with Frank.net for 1yr3mnths. When I was retrenched I learned a hard lesson with Frank.net.
First of all they request all kind of documents as if you are applying for the job.
2. They go back to your employer to request the same documents you requested from your employer.
3. They delay on purpose to process your claim.
4. For a period of amonth they tell you that your claim is being evaluated.
5. Another two/three weeks they tell you the evaluation committee still making a decision.
6. They then find a reason not to pay you.

Frank.net is a scam, becareful black nation.

Never take salary protection with Frank.net

Determine if it falls under The Ombudsman for long-term insurance or the Ombudsman for Short-Term Insurance and then take it to the correct one, if the claim is 100% valid...

 

[saturnz]

consider starting a second income, preferably passive