Question:
I have a back condition that damaged the nerves to my left leg. As a result of this I have to take alot of prescription pain medication just to be able to control the pain to make my life a bit more bearable. As Im working as an auditor which obviuosly demands high levels of concentration , the above situation makes it almost impossible for me to continue with my current career. Im also traveling alot localy and abroad which make it even worse. Within the near future I will go for a 3rd operation in three years time in order to eleviate the pain in my leg but the anticipated rate of success is less than 50 % for a reasonable recovery. We have disability insurance at work and I need to go three months off work in order to start the disability process. Im not aquinted with the conditions of our disability policy at work and want to know the options available to me if I dont qualify to go on disability in terms of the afore mentioned policy. I have noted that in terms of our Pension Fund Rules at work, it is possible to retire early due to ill-health (before the age of 55). Is this possible and if, will I be allowed to purchase annuities with my current accreud pension fund credits although Im now only 52 years of age? Thank you. Regards, Danie
Answer:
Danie,
Unfortunately, the insurance industry does not see "pain" as a reason that would prevent you from being able to do your job, so it is unlikely that you will be allowed to retire early due to ill-health. Also, most of these policies have a waiting period, ie you would be back at work from your rehab before these policies kick in. Your employer may cover you for part of the rehab period, and if you have PPS insurance then they would also cover you to some extent during this period. But probably not your income disability plan.
But you do have the option to resign from your employer, and you will be allowed to purchase an annuity (living or guaranteed) with the proceeds. However, the younger you are, the lower the guaranteed annuity will pay out.
