In South Africa today, disability insurance plays a crucial role in protecting employees from financial hardship caused by long-term or permanent disability. When employees are unable to work due to illness, injury or disability, it provides a steady stream of income, ensuring they can meet financial obligations such as bond and rent payments, utility bills and daily living expenses.However, coverage in today's South Africa is spotty (to say the least). According to research by ASISA, the country's 14.3 million income earners have only enough disability and life insurance to cover 45% of the total insurance needs of their households. And that's problematic because, according to figures from Stats SA, the national disability prevalence rate is 7.5% in South Africa. That's where employers can help make a difference, using their buying power to provide group disability insurance to their staff. But why should a business provide this kind of cover? Well, apart from being a nice thing to do, it benefits the business at the same time. Giving employees that extra peace of mind helps drive loyalty to the firm and a good attitude towards work. It also helps to attract the best talent, giving the company a competitive advantage in the market. Not to mention, the extra income it provides at a time of crisis often speeds up the return of that person to work, too.However, there are many misconceptions and myths surrounding disability insurance, which can lead businesses to make uninformed decisions. In this guide, we'll outline what these myths are, why they're wrong, and what the true situation is regarding disability insurance in South Africa.Myth 1: Disability insurance is too expensive for most businesses While it's true that disability insurance premiums can vary depending on the size and industry of a business, the cost of not having disability insurance can be far greater. Lost productivity, potential legal liabilities and increased recruitment and training costs can all significantly impact a business's bottom line. Disability insurance can help mitigate these costs and ensure that a business can continue operating smoothly even if an employee becomes disabled.Myth 2: Only big businesses need disability insuranceDisability insurance is typically provided by large enterprises, but that doesn't mean that other companies shouldn’t offer it too. The risk of an employee becoming disabled actually becomes greater the smaller your business, because that one person is going to be a greater proportion of your overall workforce. By exploring different options and working closely with insurers, small businesses can find affordable disability insurance solutions that provide essential protection for both the company and its employees.Myth 3: Disability insurance is only for specific jobsWhile certain occupations may be more prone to physical injuries or illnesses, disability insurance is not limited to specific, ‘high-risk’ jobs. Any employee, regardless of their occupation, can experience a disability that prevents them from working. Disability insurance provides a safety net for all employees, regardless of their job roles or risk factors.For instance, a common misconception is that disability insurance is primarily for those engaged in manual labour or physically demanding professions. In reality, disabilities can affect anyone, regardless of their occupation. Office workers, professionals and executives are not immune to accidents, illnesses or disabling conditions.Myth 4: Disability insurance is just for older workersSome people only think of disability insurance as more relevant for older employees who may be more prone to health issues. However, disabilities can strike at any age — and the financial consequences can be severe. So, disability insurance is a useful precautionary measure for employees of all age groups. By offering coverage early in an employee's career, businesses demonstrate a commitment to their team’s wellbeing and build a supportive work environment.Myth 5: Disability insurance is wasted money if an employee never claims it The purpose of disability insurance isn’t just to provide income replacement for employees who claim benefits. Having disability insurance in place also provides peace of mind to staff. That makes the business more attractive to potential employees who value the security it provides and encourages them to be more loyal to the firm once they are hired.Myth 6: Workers' compensation is sufficient for disability coverageSome businesses mistakenly believe that workers' compensation is an adequate substitute for disability insurance. But while workers' compensation may cover work-related injuries, it usually doesn't protect disabilities that occur outside the workplace or that result from non-work-related health issues. Essentially, workers’ compensation only covers an employee for injuries for which the employer would be liable. In contrast, disability benefits cover injuries that prevent you from working but aren’t necessarily work-related.Myth 7: Government benefits are sufficient for disability coverageSome business owners believe that government disability benefits will adequately support their employees in the event of a disability. However, while it's true that government assistance exists, it typically will not cover all the employees' financial needs — and the application process can be complex and time-consuming. Providing group disability coverage, in contrast, ensures that employees have speedy and fuss-free access to comprehensive financial support.Businesses that invest in disability insurance are demonstrating their commitment to their employees' wellbeing and long-term success. And that typically has a major impact on the success of the company. Disability insurance isn't just a nice thing to offer then, but an absolute must-have for businesses of all sizes. About YuLife.YuLife is working to reimagine the insurance industry by protecting lives, rewarding living and inspiring life. We’re on a mission to transform traditional insurance into a life-enhancing experience each employee will value and use daily. How does it work? Our award-winning app uses behavioural science and game mechanics to reward your people for living well while offering protection in case of crisis. And with our top-rated employee assistance programme, your team gets access to mental, financial and social support, virtual GPs, nutritionists, life coaches and more to help them live their best lives.Because we believe that your employees should benefit from their insurance from day one — and that wellbeing should be accessible every day, for everyone.Request a demo for your team today.