Total and Permanent Disability in Life Insurance – Do we know enough?

I must admit that I did not care to read the fine prints of insurance policies when I purchased them when I was younger.

So when I was denied from buying a term life insurance policy recently because I am already 62+ years old, it set me thinking.

This term life policy is for 3 years. With my age 62+ years old and add 3 years to it, the end of the term life policy will be 65+ years at my age group. I checked the Moneysense web site and realised that the Total and Permanent Disability (TPD) benefits is up to age 65 years old. Clearly I am too old to buy a 3-year term life policy with TPD.

As one gets older, do check that he can still buy certain life policy with the insurance company. The maximum age before you cannot buy the insurance policy either entry age 60 or 65 years.

As I read the fine prints for one whole life insurance policy bought in 1995, to claim TPD benefits, do it within 6 months from the date of commencement of disability. When is this date of commencement of disability? It is best to consult the insurance company to seek its agreement as to the date of commencement of disability.

In this same policy, the payment of benefits on account of TPD is on condition that:

the life assured’s disability must occur before the Policy anniversary on which his age next birthday is 60 years

I am clearly past 60 years going to be 63 years next year. This means that the Total and Permanent Disability benefit of this particular policy has now lapsed.

What constitutes TPD? One has to read them in the insurance policy.

In one sense, I did not have to claim TPD even though it has lapsed now at my age. That is a good thing.

Copyright © 2019, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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