serious illness
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Income Protection

Real-life case study: critical illness

Yacine: the battle against cancer

​Although Yacine has responded well to chemotherapy and is now doing much better, he still has to go for regular checkups at the hospital. He’s been battling cancer for the past 14 months and has been off sick from work this entire time. Fortunately, he hasn’t had to worry about the strain on his finances: his hospitalisation insurance covers the cost of this expensive treatment, even on an outpatient basis, and his Income Protection plan provides him with a comfortable replacement income to fall back on.

Income protection insurance: your safety net against financial strain

Yacine has been working for the same company for the past 20 years and has risen up the ranks to become a sales manager. He earns a gross monthly salary of EUR 5,000. Yacine and his wife Kate, a lecturer at a local college, have two children together.

Between the statutory Illness-Disability benefits and his Income Protection insurance, Yacine’s take-home pay will be more or less the same in the first year of his incapacity leave. As of Year Two, however, when the national Illness-Disability insurance adjusts his benefits based on his marital/family status and he only collects 40% of his salary (= EUR 2,000), he’ll be entitled to an extra sweetener of EUR 2,686.461 per month through his Income Protection coverage.

 

What happens if he goes back to work part-time?

If Yacine were ready to go back to work on a part-time basis, he would still – depending on his working time percentage – be entitled to a replacement income through his Income Protection plan. And, as an AG Employee Benefits participant, he only has to log in to My Global Benefits to check the exact size of this additional payment.

 

Waiver of Premiums insurance: protecting your family’s future

Although the doctors have given him a good prognosis, Yacine is worried about his family. He’s made all the necessary preparations in case his health spirals downwards and the worst should happen. With his corporate-sponsored Waiver of Premiums insurance, Yacine’s death benefit coverage will remain intact during his incapacity leave. In other words, his family will still be eligible for a lump-sum death benefit should he pass away.

In addition, with this coverage, contributions will continue to be set aside for his supplementary pension. Without this coverage, Yacine’s family would not be entitled to any death benefit and contributions towards his supplementary pension nest egg would be suspended during his incapacity leave.


1for illustrative purposes only

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