Protecting Your Most Valuable Asset
Your ability to earn an income is probably your biggest financial asset — it funds everything else. Income protection (also called disability income cover) pays you a monthly benefit if illness or injury stops you from working, so the bills keep getting paid while you recover. This calculator estimates the monthly benefit you'd need.
Why insurers cap cover near 75%
Most South African insurers will only cover up to roughly 75% of your income. The reason is deliberate: because the benefit is usually tax-free, replacing 100% of your taxable income would leave you financially better off not working — so insurers limit cover to keep an incentive to return to work.
Check the waiting period and escalation
Two details matter as much as the benefit amount: the waiting period (how long after you stop working before the benefit starts — often 1, 3 or 6 months) and whether the benefit escalates with inflation. A long waiting period lowers your premium but means you need more emergency savings to bridge the gap.
Disclaimer: Finance Atlas is not a registered Financial Services Provider (FSP). This is an educational estimate of cover needs, not a premium quote or financial advice. Actual premiums are underwritten individually based on your circumstances. Always confirm cover and pricing with a registered insurer or FSP.
Frequently Asked Questions
How much income protection do I need?
Enough to cover your essential monthly expenses if you couldn't work. Most people aim to replace as much of their income as insurers allow — typically up to about 75% — after accounting for any existing cover.
Why can't I insure 100% of my income?
Because income protection benefits are generally tax-free, replacing your full taxable income would leave you better off not working. Insurers cap cover (usually around 75%) to preserve the incentive to return to work.
What's a waiting period?
It's the gap between when you stop working and when the benefit starts paying — commonly 1, 3 or 6 months. A longer waiting period means a cheaper premium but a larger emergency fund needed to bridge the gap.