Total and Permanent Disablement insurance provides the capital necessary to retire debt, fund care, and allow the household to maintain a lifestyle and standard of living similar to that experienced before the event.

Total and Permanent Disablement is also known as a “living death” contract.

A lump sum is payable if:

  • You are permanently unable to return to work.
  • You suffer a serious impairment such as losing your eyesight, use of your legs or arms, or a combination of any two. (This applies even if you are still able to work).
  • There are also partial benefits for loss of one eye or limb.
  • The policy also provides full payment in the event of a diagnosis for loss of cognisant reasoning. (Alzheimer’s/Dementia)

In the event of either of you being totally and permanently disabled, it is important that there is adequate funding in place to meet the cost of the ongoing care required to rehabilitate the disabled partner and/or manage their future disablement with dignity.

The policy offers capital, which may be required for the purchase of, or freeholding of, your residential home, special renovations for wheelchair access to bathrooms and access ways, motor vehicle modifications, etc. The policy claims payment is made after three months once a determination of permanent disability has been made.

In the shorter-term, funds would have been received from the Trauma policy, as it is highly unlikely that there would ever be a case where a Trauma claim benefit is not “triggered” prior to a total and permanent disablement declaration occurring.