FMI – Income protection for entrepreneurs

FMI exists to support brave people in the pursuit of their passions, dreams and ambitions… the type of people who, through their daring spirit, want to make the world a better place.

We support people through their life’s journey, protecting them from the financial impact of injury, illness or death.

We believe that your ability to earn an income is your most valuable asset and that, no matter what you do for a living, life insurance products should be designed to protect 100% of your monthly income against the risk of disability, critical illness and death.

FMI pioneered income protection for the self-employed, at a time when the industry offered cover only to professionals. We believe this type of living insurance enables career growth by giving entrepreneurs and business owners the peace of mind that their income will be taken care should they get sick or injured.

According to our claim stats, a staggering 70% of South Africans will, in their working lifetime, have an injury or illness – whether it be minor or severe – that will prevent them from earning an income for at least 7 days. However, 79% of life insurance benefits sold pay clients a once-off lump sum, and for permanent disabilities only. This is a scary fact! And ignores the fact that what you are really trying to protect is your monthly income stream.

Why is this concerning? Structuring your cover like this leaves people dangerously exposed to non-permanent disabilities, such as pneumonia or a back operation, which could completely de-rail your business and your income, as well your employees’ lives.

Not only is it imperative to protect against the immediate effects of not earning an income, but any break in income today would have an enormous impact on any future plans and retirement planning.

FMI’s suite of income benefits is ideally suited to meet ongoing monthly expenses like groceries, electricity, education and investment contributions. They’re easy to understand and plan for because you don’t need to calculate the lump sum required to provide an entire future income. They’re also typically far more affordable than lump sum benefits, and income benefits make updating your policy simpler in the long-term, as all you would need to do is tell your insurer how your income has changed, to ensure that you always have the correct cover in place.

So, it begs the question… why doesn’t everyone have income protection?

One reason may be because many business-owners don’t know they can get income protection that’ll cover them from 7 days or longer. Many self-employed don’t have income insurance because they think they won’t qualify.

At FMI, we’re are on a mission to challenge how insurance is bought and sold. We believe that protecting someone’s future income is the foundation of anyone’s financial plan, and that everyone should protect their income before anything else, for both temporary and long-term disabilities, and only use a lump sum for once-off extra expenses or paying off debt.

Grace Winter – Head of Brand & Communications at FMI, a division of Bidvest Life