Total Permanent Disability

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Definition

Total permanent disability is a condition in which an individual cannot work for the rest of life due to illness or injuries sustained. This is a state when the person will never be able to work again.

Given that such a condition can completely halt a person's earning potential, it becomes crucial to evaluate how disability insurance protects your future by providing the necessary financial cushion to maintain one's quality of life.

Description

Life can pose several unexpected conditions like illness, injury, or an accident which could leave an individual in a state where they cannot function properly without help. And when there can be no output, there can be no money.

Savings are crucial for such accidental happenings when a person can be left disabled for life. But what if the child’s marriage budget is used for the medical expenses? It is a failure of planning which can push the dependents and the person injured into misery. This is why life insurance is preferred- a policy that can provide cover for total permanent disability. 

Disabilities can be of two types, temporary or permanent, based on which the insurer will offer the compensation. The amount of money received as reimbursement will depend on the nature of the disability, like loss of one limb or loss of both limbs. Individuals may insure themselves against the total permanent disability either under the personal accident policy, or they can buy rider covers in the life insurance policy. A total permanent disability cover gives you financial security for life and helps you manage the medical bills and other unexpected expenses.

Example

Uday purchased an Rs.1 crore term plan. He also purchased an additional cover of Accidental Death and Disability Rider. 2 years after the purchase of the policy, Uday met with an accident while he was on his official trip to Jodhpur. 

He was left unconscious on the road and was then rushed to the hospital for immediate care. After days of treatment, Uday recovered consciousness, but both his legs lost strength. As a result, Uday was permanently disabled from work. The insurance company compensated Uday with 100% of rider cover sum assured.