Personal Disability Insurance

The cost of a disability, which can be incurred and sustained for the rest of your life, can exceed the cost of that which you pay in premiums. The ways in which this permanent disablement can interrupt your lifestyle and those of your loved ones is extremely substantial. Life insurance statistics tell us that at the age of 35 you are 10 times more likely to be disabled from an illness or injury than you are to die from it (according to ABC Health).

Personal disability insurance can be considered with two different types of cover.

The first is total and permanent disability insurance. This will cover you in the event that you have been unable to work for 6 months and are expected never to return to work again. This can be caused by an accident, injury or illness. This type of personal disability insurance is paid out in the form of a tax free lump sum payment to the person insured.

The second type of personal disability insurance is in the form of income protection.

Income protection has an included benefit in the policy if you are to become permanently disabled. The policies will pay you out to the end of your benefit period if you are deemed to be permanently disabled. After this time the payments will cease. In this instance a longer benefit period would be more beneficial, so a benefit to age 60 or 65 would be better than a benefit of 2 or 5 years.

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