Why traditional income protection falls short for critical illnesses

Cancer was among the top three reasons for income protection claims across all age groups in 2023, according to the Bidvest Life Claims Report¹. And this is not a short-term trend. Projections show that, by 2030, cases of female breast cancer in South Africa will rise by over 20%, and prostate cancer cases are expected to nearly double².

Melody Cloete, Training Specialist at Bidvest Life, says that this highlights the urgent need for all working South Africans to protect their most valuable asset – their ability to earn an income – during times when they are temporarily unable to work due to illness or disability. 

However, traditional income protection has key limitations when it comes to critical illness cover

Ability to work: Critical illnesses are often diagnosed long before the illness progresses to the point where clients are deemed medically unable to work. However, under traditional income protection, benefits only start paying out once a client is unable to work. This creates a vulnerable window where clients may still be working – or being expected to work – while undergoing life-altering treatment, potentially at the cost of their recovery. It can also happen that, even with a critical illness diagnosis, clients may never reach a point where they cannot work, but they still need to be able to meet extra financial obligations linked to their treatment and lifestyle changes.

Intermittent claim periods: Critical illnesses, like cancer, often result in multiple treatment rounds with recovery gaps in between. But traditional income protection benefits are triggered by occupational disability, which means that payments are paused when clients return to work – even briefly – and restart only when they qualify again. This presents two challenges: firstly, clients need to repeatedly supply evidence to claims assessors, instead of focusing on their recovery; and secondly, because the payouts are interrupted, the benefit often ends up being inadequate in terms of covering the lost income. 

Additional monthly costs: A critical illness diagnosis often brings unexpected additional monthly expenses such as lifestyle changes in terms of diet, treatments or medications not covered by medical aid, and travel expenses to and from treatment facilities, etc. In such cases, even 100% of a client’s normal net income provided by income protection will likely not be enough to pay their normal monthly expenses as well as these additional costs.

The answer: Critical Illness (CI) Income

CI Income from Bidvest Life is designed to bridge these gaps. It provides 130% of the insured monthly income through guaranteed monthly payments for up to 12 months after a qualifying diagnosis, regardless of whether a client continues working during treatment. “CI Income not only eliminates repeated administrative burdens, it also ensures uninterrupted support and provides flexibility for real-life recovery needs,” Cloete explains.

CI Income is not a replacement for traditional critical illness lump sum benefits – it complements them. While lump sum benefits provide a once-off payout to cover major expenses such as medical bills or home modifications, CI Income addresses the ongoing, often unexpected, monthly costs that can arise during treatment. 

Real client story: Benefit in action

Meet Bidvest Life policyholder Cherine Lombard*, a passionate 28-year-old school science teacher. While renewing her driver’s licence, she noticed vision problems and, after further tests, was diagnosed with melanoma in her right eye – something no young person expects. 

Her treatment involved radiation and injections into the melanoma in her right eye every six weeks, which she describes as “traumatic”. In between treatments, she was unable to teach in the classroom and often needed days off to recover. Luckily, she had planned responsibly, and was able to claim on her CI Income and CI Lump Sum benefits. She received 130% of her insured monthly income for 12 months, irrespective of her ability to work, and a CI Lump Sum payout provided a once-off amount. 

“You never know what tomorrow holds, even as a young person. Being covered changed my whole perspective on life. It gave me the freedom and the financial support I needed to get through the past year, and the courage to make big decisions in my life. I was able to resign from my job and move closer to my family in a time when I really needed emotional support,” Lombard says.

“Cherine’s story illustrates how CI Income gives clients more than income protection. It gives them choices,” says Cloete. “When faced with a critical illness, it allows them to focus on their recovery, not on paperwork or how they will make ends meet. That is the true value of CI Income – it supports your clients practically and emotionally when they need it most.”

1 Bidvest Life 2023 Claims Report

2 https://sajo.org.za/index.php/sajo/article/view/220/616?utm 

* Cherine Lombard has been compensated for her endorsement of Bidvest Life. Her views and opinions are based on her personal experiences, and individual opinions may vary. This endorsement should not be constituted as financial advice. Please consult a qualified independent financial adviser for personalised guidance.