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Term Plan_ Permanent disability Rider

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22 Feb, 2022 by  ravi kokate


I wish to buy term plan but I need rider "Permanent disability" where the company pays either lump sump and mthly amount on Permanent disability. I have 2 question and request your guidance

1) Which companies offers "Permanent disability" rider and not "Permanent disability death" benefit with SI paid either one time or mthly with widest coverage.

2) In term plan under "Permanent disability rider" do any company provides "Double Benefit" than in policy if the insurer is travelling via public transport and meets with accident. I am told some companies provide not sure if this is true

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Term Life Insurance

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23 Feb, 2022
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HDFC offers a rider known as Income Benefit on Disability Rider which pays out a monthly income to the nominee for 10 years in the event of accidental and permanent disability. The maximum sum insured that can be taken under this rider is ₹2 Crores

TATA also offers a similar rider but the income option is currently not being offered. However, a lumpsum payout will be made in the event of permanent disability arising out accident. Here also, the maximum sum insured under this rider is ₹2 Crores

MAX offers a similar rider and this includes disability due to non accidental reasons as well. While the rider policy wording mentions the maximum rider sum assured as ₹1 Crore, during a recent case, their team said that they can only offer ₹25 lakhs under the rider (base policy sum assured) was ₹3 Crs. I found their premium also to be quite higher compared to the above two companies & more importantly found themselves very confused w.r.t. rider.

Hope the above information is useful to you.

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23 Feb, 2022
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Hello Ravi Kokate,

Thanks for asking a question on Permanent Disability.

Answer for the first question - YES all the companies provide permanent disability cover.

Answer for the second question - YES - the company provides "Double Benefit" in policy - which is Accidental Permanent and Total Disability is the condition in which the Life Assured becomes incapacitated and as a result not able to earn an income from any work, occupation or profession for the rest of his/her life. The disability must be caused solely and directly by external, violent, unforeseeable and visible means, occurring independently of any other causes and proved to the satisfaction of the insurer. The permanence of the disability will only be established 6 months following the date of the ‘event causing the disability.

Total and permanent disability also includes the loss of both arms or both legs, or one arm and one leg, or of both eyes. Loss of arms or legs means dismemberment by amputation of the entire hand or foot. Loss of eyes means an entire and irrecoverable loss of sight.

An accident is a sudden, unforeseen and involuntary event caused by external, visible and violent means.

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