Disability insurance

Retirement age is the age at which you stop working. But sometimes, an accident or illness may interrupt your career and cause, in addition to physical and mental pain, high financial expenses and a physical disability that impairs the ability to work and earn a living even before reaching retirement age.

Disability insurance is designed to ensure a monthly income until you reach retirement age in situations where we are unable to work, either for a short period of time or for our entire adult life. This way you can ensure financial peace and prevent a decrease in your standard of living.

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What is
Disability insurance?

Disability insurance is insurance in case the insured loses his ability to work, due to an accident or illness or until the age of 65, whichever comes first. The insurance provides a monthly payment of up to 75% based on the amount of the monthly salary. The insurance can be purchased as an independent insurance or as an addition to the insurance in the pension savings. When the disability insurance is activated, there is a release that guarantees the continued payment of the policy under which the insurance was purchased. The insurance is designed to help you during a time when, God forbid, you will not be able to work in your profession, so you can support yourself and your family. In disability insurance there is a waiting period, usually of three months until payment is received.

Tax benefits

The State of Israel grants a tax benefit on the payment for disability insurance.
The compensation amount is subject to tax, the tax rate is determined by the assessor.
The payment for this insurance is known to the self-employed and under certain conditions also to the employee.

Mortgage insurance

Most of us will not be able to purchase a property with private capital and will turn to obtain a loan. When applying to a legal economic entity, one of the conditions that must be met in order to receive approval for a loan is mortgage insurance. Mortgage insurance is actually two insurances, and both together are required as a condition for receiving the loan. The buyer of the property is required to insure the building he is purchasing against damages. This insurance is basically building insurance for everything, and it is important for every property owner, even if it is not purchased in order to meet the terms of the loan.

Mortgage life insurance is additional insurance that the buyer of the property is required to purchase as a condition of receiving the loan. This insurance is intended for the death of the property buyer. In this case, in order to avoid that the rest of the buyer will inherit the large mortgage debt and find themselves in a difficult situation – the insurance company is the one that will complete the repayment of the loan, so that the property owner will not have to deal with the debt and the lender will not have to worry that the loan will not be repaid.

Important information

If the monthly income from your job is a significant part of your income, you should very well have insurance that will ensure that even if God forbid you cannot work, you will still have income

Disability insurance is limited to 75% of the total monthly income, when the calculation will be determined according to the terms of the policy. With any change in salary, you should check with us if it is necessary to make a change.

When filing a claim, the insured is asked to present pay stubs for a period between 3 months and a year before the incident. The payslips are presented to prove that the insured worked continuously until the date of the event as well as proof of the reported salary.

If it was discovered during the claim that the insured reported as self-employed a salary or earned an amount lower than the salary he sought to insure when purchasing the insurance, the insured will not be compensated for the full amount of the insurance he actually purchased, but in an amount that does not exceed 75% of the actual salary.