Permanent Total Disability insurance explained

Permanent Total Disability cover pays out the sum assured when the life assured is diagnosed as being permanently unable to work again due to disability or sickness. Because this policy only pays out on permanent disability there is typically a waiting period of  6-12 months before payments is made, this is to ensure that the medical condition is permanent. However, in case where the medical condition is obvious payment can be made sooner.

There are two types of  PTD,
a: any occupation cover, where the benefit is only paid  if the life assured is permanently
unable to follow any occupation.
b: own occupation cover; where the benefit is paid if the life assured is permanently unable
to follow his or her own occupation.

Permanent Total Disability may not be offered to certain professions or may be offered at increased premiums, where the life assured has a higher risk of injury due to their employment. e.g. farmer, construction worker. PTD cover usually ends at 60-65 years of age.

Some life companies offer an alternative PTD cover for those who are over 60-65 or are not in gainful employment at the time of a PTD claim. this alternative is related to the inability to do certain daily activities without the assistance of another person, e.g. three of five specified activities of daily living such as Washing, Dressing, Feeding, Toileting, Transferring to a chair or bed. In other cases the definition may be related to loss of independent existence, i.e. someone who needs full time care.

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