Total Permanent Health Insurance/Income Continuation Benefit

Total Permanent Health Insurance/Income Continuation Benefit

The cover is provided in case of incapacity or sickness resulting in a member being unable to continue with his/her own or suited occupation. Unlike Occupational Disability Benefit, this cover provides for monthly income hence it is often referred to as an Income Continuation Benefit.

The benefit is normally a reduced monthly salary equal to roughly 75% of monthly salary subject to a maximum amount; e.g. P 40,000.00. 
Waiting periods can be as short as one (1) month, or as long as 24 months before a claimant can receive a benefit. On average employers opt for a six (6) month waiting period. For benchmarking purposes, the six (6) months waiting period should be acceptable to both the employer and employee.

The benefit is payable for as long as the claimant remains disabled but will cease on the happening of any of the following events: -

  • The claimant reaching the retirement age
  • Early death
  • The claimant becoming well and being able to go back to work. It must be noted that availability of a job in the market is not a consideration.

A waiver of premium and an escalation factor can be opted for and with regard to a waiver, Botswana Life “takes over” the employer contribution in respect of the member to the pension fund. As for the latter, the benefit increases by a stated percentage to minimise the effects of inflation. The death continuation benefit can also be opted to provide death cover to disability benefit claimant for a stated period of time. 

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