In general, Permanent Disability Cover is a type of insurance that provides a single lump sum payment in the event that a person becomes permanently disabled, giving them the financial stability to manage their life through troubled times.
The next question I find that is asked the most, is what consitutes 'permanent disability'? Across the different insurers fortunately this definition remains the same. A permanent disability is an illness or disability that is severe enough that it results in you being unable to work for three consecutive months. Also, following that period, the incapacitation must be severe enough that it renders it unlikely for you to ever work again, although the precision of this aspect differs slightly between insurance companies.
Permanent Disability cover is different to life cover but it can interact with it in several ways. If you select standalone permanent disability, this interaction will not come into play. Your Permanent Disability cover will be stand alone, and should you claim on it there will be no impact on any life cover you may or may not possess. However, some companies offer an accelerated permanent disability cover. This option involves cheaper cost and premiums. In this option, if you are permanently disabled and receive the disability lump sum payment, the amount of your Life cover will reduce by the amount paid out in the permanent disability claim.
There are usually a limit of eligible entry ages that differ for Accelerated cover and Stand Alone cover. For Accelerated the entry ages range between 16 and 60, whilst for Stand Alone it ranges between 16 and 55.
Lastly, there are two different types of Permanent Disability Cover; 'own occupation' and 'any occupation'. If you have 'own occupation', you will be paid your insurance claim if you are fulfil the above criteria and are unable to return to the specific last job you held. If you have 'any occupation', you will be paid your insurance claim if you fulfil the above criteria and are unable to return to any occupation at all. The determination of which category your insurance will fall under will be determined by the insurer based on your specific employment conditions.
If you have any further questions or wish to discuss securing the best possible cover for you: