2 year waiting period

A 2 year waiting period is one of the longest waiting periods available. A 2 year waiting period means that once you are off work due to an illness or injury you must wait 2 years before your monthly benefit payments start.

Advantages

  • The premium is cost effective and is less expensive compare to shorter waiting periods.

Disadvantages

  • You have to wait 2 years before you monthly benefit is paid out.
  • You need to make sure that you have sufficient funds to live on throughout the waiting period.
  • If you are off work due to illness or injury for a period of time but return to work before the 2 year waiting period is over, you will not be eligible to receive your monthly benefit.

Why a 2 year waiting period is recommended

  • You can survive for up to 2 years without your employment income;
  • You have accumulated sick leave and annual leave to cover your income in the event you are off work due to a prolonged illness or injury;
  • You have liquid assets you can utilize in an emergency if you are off work for any reason;
  • You have other sources of income other than your employment income;
  • You are able to rely on any family member or spouse to provide you with financial assistance for some time if you are off work for any reason; or
  • You have another income protection policy with a 2 year benefit period and shorter waiting period, which will complement the recommended income protection policy with a 2 year waiting period.
The Dover Group