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Is the coverage redundant for Eldershield?
22 Apr 2017 (106 views)

Dear Mr. Tan

I am currently insured under a 10 year Term insurance policy which covers death and permanent total disability. Total disability is defined as "complete and continuous inability of the Insured at that time and at all times thereafter to engage in any business or occupation or perform any work of any kind for remuneration or profit"

I am also covered under a supplementary Eldershield policy which pays on severe Disability. This is defined as "inability of the Life Assured to perform at least 3 of the following activities of daily living, even with the aid of special equipment and always to require the physical assistance of another person throughout the entire activity (washing, dressing, feeding, toileting, mobility, transferring).

Is the coverage under Eldershield redundant? If I am able to claim under Eldershield, would I also qualify to claim for permanent total disability under the Term insurance policy?

REPLY
If you are disabled to an extent that is payable under Eldershield, the same disability would allow you to claim under permanent total disability. 

However, the coverage under your Term policy is for 10 years only. The coverage under the Eldershield policy is for a lifetime. Most people are likely to be disabled at an advanced age, when the Term policy would have expired.

 


Is the coverage redundant for Eldershield?
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Dear Mr. Tan

I am currently insured under a 10 year Term insurance policy which covers death and permanent total disability. Total disability is defined as "complete and continuous inability of the Insured at that time and at all times thereafter to engage in any business or occupation or perform any work of any kind for remuneration or profit"

I am also covered under a supplementary Eldershield policy which pays on severe Disability. This is defined as "inability of the Life Assured to perform at least 3 of the following activities of daily living, even with the aid of special equipment and always to require the physical assistance of another person throughout the entire activity (washing, dressing, feeding, toileting, mobility, transferring).

Is the coverage under Eldershield redundant? If I am able to claim under Eldershield, would I also qualify to claim for permanent total disability under the Term insurance policy?

REPLY
If you are disabled to an extent that is payable under Eldershield, the same disability would allow you to claim under permanent total disability. 

However, the coverage under your Term policy is for 10 years only. The coverage under the Eldershield policy is for a lifetime. Most people are likely to be disabled at an advanced age, when the Term policy would have expired.