What Is Total And Permanent Disability On A Critical Illness Insurance Policy?
Generally it is the choice of the consumer to decide if they want these extras but in some cases they may be built into a policy. Some of these can be beneficial to people, but it is up to the individual what they want to be insured for therefore if they feel some of the extras are more suited to them then these can be added on, as each add on would typically increase the cost of the plan. Options which are available on most plans are indexation, premium waiver, fracture cover, reinstatement, replacement and total permanent disability. Each option will cover the insured for different reasons which is why it is the choice of the individual for them to decide what is appropriate to their circumstances.
When taking out critical illness insurance there are a number of options available to purchase when you buy. One in particular is TPD (Total and Permanent Disability), this is an extra that can be taken out additionally on top of or alongside your policy. This option or add on can offer cover for you so that in the event that you become totally and permanently unable to work in your given profession. The amount of cover that is offered is generally the same as the amount of cover that you have with the life and critical illness plan. As there are so many options available it may seem easy to choose none or all, however a financial adviser will be able to give you advice on what may or may not suit your circumstances.
Generally if you have been paid out for this extra TPD once then you possibly may find it hard to take out another form of protection to cover you such as critical illness insurance. This type of extra on a policy can really be looked at like a fully comprehensive policy. Total Permanent Disability comes with a few different terms dependent on your current occupation when the policy was taken out.
TPD own occupation definition a payout would be made if the individual was unable to carry out their own occupation
TPD own or suited occupation definition a payout would be made if the individual was not able to carry out their own occupation or any occupation which they would be suited to.
As with anything each and every insurance company may be different, they use different underwriting techniques which can therefore result in their terms and conditions and definitions of Total and Permanent Disability varying dependant upon the provider you have chosen to insure with. It is a good thing to look around and see just what is on offer for you and to see if you can get the best policy for the money you can afford. The main claims that are made under a critical illness insurance plan are heart attack, cancer and stroke. The heart attack is often for males as is the strokes and caner particularly breast cancer for females. The Association of British Insurers (ABI) have a core list of critical illnesses that must be covered under your plan and they also have some definitions of when you should be able to claim under your plan.
Some examples of a Total and Permanent Disability within a critical illness insurance policy would be total paralysis of the person insured due to a serious accident or medical condition. A person who is wheelchair bound may also be deemed as totally and permanently disabled providing this has been confirmed by a medically qualified and practicing general practitioner or consultant. It is important to take into consideration that sometimes it may be difficult for anyone to stipulate that a medical condition would be permanent.
by: Mark Glendale