THE IMPORTANT ROLE OF BUSINESS OWNERS
Business owners are the lifeblood of our economy. Many have shown remarkable resilience during the COVID-19 pandemic by adapting to new norms of doing business and innovating to create new opportunities.
Business owners come in many shapes and forms. You may be a self-employed individual working from home, a part-owner of a business with staff who rely on you, or an entrepreneur with a passion for setting up new ventures. Whatever your business, it’s your income which allows you to make an impact in the world around you and those who rely on you. And by securing your income stream, you’re able to safeguard the financial future of not only your family, but your employees and their families as well.
HOW FMI PROTECTS BUSINESS OWNERS
We offer two versions on FMI Individual – Comprehensive cover and Event Based cover. Your occupation and work status will determine which cover you qualify for. The difference lies in how the benefits work in paying an injury, illness or disability claim. The critical illness and life cover benefits are the same across both versions. Since inception, FMI has supported business owners by providing a monthly income to cover their salaries and business overheads when they couldn’t work due to injury or illness. Over the years, we’ve innovated our product to include a combination of income and lump sum benefits that provide a payout for injury, illness and death.
INCOME BENEFITS
provide peace of mind that your salary and business overhead expenses will be covered in the event of an injury or illness. Whilst some of our claims have been serious and long-term, the majority are for more common events.
LUMP SUM BENEFITS
provide for once-off or additional costs, such as buy and sell agreements or key person cover in the case of death or disability. However, it doesn’t pay for temporary events, which are most likely to occur. That’s why income cover is so important.
WHAT TO CONSIDER WHEN SELECTING COVER FOR Business owners
DID YOU KNOW?
7/10 clients will have at least 1 injury or illness that results in them being able to claim on an income protection benefit during their working lives.
1. TEMPORARY INCOME PROTECTION AND BUSINESS OVERHEAD BENEFITS
LOSS OF INCOME NOT REQUIRED
Many insurers assess business overhead claims under a Loss of Income criterion, which can be difficult to
prove if the loss of income doesn’t coincide with the period of injury or illness. We don’t have that
requirement and our business overhead benefits are assessed using the same criteria as our temporary
income protection benefits.
SPEED OF FASTTRACK CLAIMS
Speed of claim payment is crucial for business owners who need to pay staff and suppliers.
FMI’s Fast-Track claims offer a simplified claims process with payments based on receiving objective
medical evidence. This results in faster claim payments because we don’t have to wait for medical
professionals to complete an occupational disability assessment. Plus, the first 60 days of the guaranteed
claim period are paid upfront on acceptance of the claim.
THE MOST FREQUENT FMI CLAIMS IN 2019:
- Minor infections (e.g. bronchitis, flu)
- Hysterectomy
- Rotator cuff repair
- Cancer – level D – Stage 1
- Knee surgery
SHORTER WAITING PERIODS
While it’s common industry practice for business owners to qualify for a 7-day waiting period on their temporary income protection benefit, this often isn’t available if you work in a manual occupation.
At FMI, the 7-day waiting period is still available to most occupations that perform manual duties, such as self-employed plumbers, electricians and mechanics.
Business overhead benefits typically have longer waiting periods compared to temporary income protection benefits. We understand that a shorter waiting period increases the chance of having a successful claim and therefore we offer the same waiting period options for both temporary income protection and business overhead protection.
On FMI’s Event Based cover, you don’t need to select a waiting period because most claims are paid from day one automatically. A 7-day waiting period only applies on temporary impairment claims and when you claim under the Sicknote category in our Fast-Track Events criterion.
TEMPORARY INCOME PROTECTION CLAIM IN ACTION
TOM (46, SELFEMPLOYED SURVEYOR)
CLAIM EVENT: Fractured ankle
INCOME BENEFITS CLAIMED ON: Temporary Income Protector (7-day waiting period) and Business Overhead Protector (7-day waiting period)
CLAIM:
Tom received a payout for 89 days in total. The first 30 days of his claim were paid within 48 hours of receiving his claim form and x-ray. The beauty of these benefits is that Tom could claim for something as minor as a fractured ankle, and he could claim on both his temporary income protection and business overhead benefits.
2. LIFE INCOME IF YOU PASS AWAY
You can choose to provide your business with up to R150 000 per month for either 6 or 12 months in the event of your death. This can assist with providing a monthly income to pay for the ongoing monthly expenses while a suitable replacement is found or trained to take over your responsibilities.
Who is this option available to?
A business beneficiary must be a registered close corporation, company, or partnership which has an insurable interest in the business owner insured and will continue should the business owner die.