What is Total and Permanent Disability Insurance?

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What would happen to you and your family if you became permanently disabled tomorrow? If you could never take part in your existing line of work again due to a disability, would you be able to pay your bills? Would you be able to hire additional help like a private nurse if you needed to? If not, you might want to talk to your life insurance company about total and permanent disability insurance.

Total and permanent disability insurance can often be issued as an add-on to your life insurance policy. Basically, instead of paying out the full benefit after your death you can receive a lump sum payment or instalment payments while you're still living but permanently disabled. While that money would decrease your death benefits later, it could prevent your condition from being an unnecessary financial burden on loved ones in the meantime.

Some of the conditions that might be covered by a total and permanent disability insurance plan are total blindness, loss of limbs, or any condition that would prevent you from completing everyday tasks (like simply being mobile). What conditions are covered can vary significantly from one provider to another, so consider what you might be most at-risk for when comparing total and permanent disability insurance plans carefully.

 

Why You Need Total and Permanent Disability Insurance

Not all illnesses and injuries are temporary. Some conditions are permanent. They can change your entire life as you know it in the blink of an eye. They could affect your family's lives too if you're their sole or primary provider. If you become permanently disabled and are no longer able to work and provide for your family, here's what the right total and permanent disability insurance policy could do for you:

  • Total and permanent disability insurance can help you get the medical care you need, even beyond what your health insurance would cover. Whether you need home add-ons like a ramp or someone to help take care of you, your insurance plan can let you draw from future death benefits to pay for the care you need now.
  • You'll be able stay on top of your bills even if you can't bring in an income anymore when you have total and permanent disability insurance that covers your medical condition. (Note: Different insurance companies will vary in what medical conditions are covered, as well as what employment scenarios are covered by a total and permanent disability insurance policy. Some may cover you if you have to permanently leave your existing line of work for example, while others will only cover you if you cannot work at all.)
  • Your loved ones will have peace of mind. Not only will they know that expenses can be covered, but they'll know that you can afford the care you need without relying solely on them or depleting your savings or investments.