Disability Insurance

There are many forms of this but they are normally classified as either:

1. Lump sum payments
2. Regular, ongoing monthly benefit payments

1) Lump Sum – Total Permanent Disability Insurance (TPD)

Generally speaking Total Permanent Disability Insurance (TPD) covers sickness or injury, where a person is unable to work in their own or any occupation for which they are suited by training, education or experience.

As with Life Insurance, there are many inclusions and exclusions that can apply – for example -

• Guaranteed Future Insurability
• Indexed or non Indexed sums insured
• Own Occupation clause or Any Occupation clause

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2) Regular monthly benefits

• Income Protection
  Income Protection Insurance is an insurance policy, paying benefits to policy holders who are incapacitated and hence unable to work due to illness or accident. The benefit can be paid through to age 70 to protect you against long term disability
• Business Overheads Cover
  Works in much the same way as Income Protection but pays to the business a benefit level that will assist with the monthly overheads.
• Business Extra / Continuance Cover
  Again, similar to Income Protection but is designed to protect the key people in a business and the revenues that they generate. For this reason, we call this Cash Flow Cover or Revenue Cover.