At FMI, we believe your income is more than the money you earn. It provides for your lifestyle today and your future plans. Priorities may change as life changes, but the one constant is your need to earn an income. It not only impacts your own life, but those you love and the world around you. Your income has a ripple effect that extends further than just supporting your families. Consider the impact if you weren’t able to pay your landlord, who has a bond to pay; or your employees, who have families to support.

Right now, the South African savings rate is shockingly reflected as -10%1. This figure indicates that most individuals are spending more than they earn, which means they do not have savings tucked away to take care of any interruptions in their monthly income. It’s one of the reasons why, at FMI, we believe risk planning starts with protecting your income against your most likely risk of a temporary injury or illness.

“At FMI, we believe life insurance should protect 100% of your income first - so you can go on to enjoy the life you live today and create the life you want tomorrow - for yourself and your family – without having to worry about an injury or illness derailing those plans,” says FMI CEO, Brad Toerien.

“Our role as an industry is to start by really understanding the mindset of our clients and their needs at each stage of their life in order to provide the very best cover possible,” Toerien stresses. "It goes without saying that we as insurers, have an obligation to provide product solutions that are relevant to an individual's particular life stage -  solutions which adapt as their life changes and for as long as they need."

The advantages of income benefits:

  • Income benefits mimic the income stream you are trying to replace, making them easier to understand.
  • Income benefits simplify planning as they don’t require you to calculate the lump sum required to provide a future income. This also makes keeping your policy up to date simpler in the long-term.
  • Income benefits can save you money because they’re more affordable than the lump sum equivalent.
  • Income benefits mitigate investment and inflation risks because you do not need to worry about investing a lump sum of money, and the future impact of inflation.
  • Income benefits mitigate longevity risk because you do not need to worry about running out of money before you die.
  • Income benefits mitigate behaviour risk because you will not be tempted to spend large sums of money on expensive cars or luxury holidays.

Start seeing life insurance as something that protects you in life, not just death, by putting your Income First.


1According to the latest Statistics South Africa Survey, the South African savings rate is -0.10%.FMI

Informative Reading | May 07, 2020

When last did you check in with your adviser?

Here are 6 questions to ask your adviser to ensure you understand your cover.

Continue Reading
Informative Reading | May 07, 2020

What to do if you suspect you have COVID-19

You’ve all taken the necessary precautions when popping out for essential items. But what do you do if you start showing symptoms of having contracted COVID-19?

Continue Reading
Informative Reading | May 04, 2020

COVID-19: What you need to know about Income Protection

If I get COVID-19, will my income protection or life insurance cover me? And what can I do if I can’t pay my premiums as a result of the pandemic affecting my income? These questions are top of mind right now as the lockdown affects millions of South Africans. Read this article to find out.

Continue Reading