A consumer studies the difference between the Eldershield policy and the permanent total disability benefit under a life insurance policy. He made this analysis. He asked if he should be covered for Eldershield, if he is already covered under a Term Insurance policy.
ELDERSHIELD
An private Eldershield policy protects the insured in the event that he cannot perform 3 of the Activities of Daily Living, even with the aid of special equipment and always require the physical assistance of another person throughout the entire activity.
The Activities of Daily Living are:
- Washing
- Dressing
- Feeding
- Toileting
- Mobility
- Transferring
PERMANENT TOTAL DISABILITY
The disability benefit under a term insurance policy covers the insured up to age 65. The permanent total disability is defined as: Total physical loss, or the inability to take part in any paid work for the REST of a person’s life. It will not pay if the insured is merely unable to perform the same job as before, or unable to perform a job to which his or her training, education or experience is suited for.
Total and physical loss means:
- The total and permanent loss of sight in both eyes
- The total loss of, or total and permanent loss of use of , two limbs at or above the ankle; or
- total and permanent loss of sight in one eye and loss of, or total and permanent loss of use of, one limb at, or above the wrist or ankle.
If the insured is 65 years old and above but under 70 years old, total permanent disability, and totally and permanent disabled means total physical, or severe disability in which the insured cannot perform 3 of the Activities of Daily Living, even with the aid of special equipment and always require the physical assistance of another person throughout the entire activity.
MY CONCLUSION
A term insurance policy is intended to cover premature death occurring before age 65. The Eldershield policy (long term care) is intended to cover a policy who lives to an advanced age and needs long term care, perhaps after age 80. They cover separate needs and should be examined separately.
Apart from coverage, the consumer should also consider the cost of the long term care. A separate study shows that the premium rate is too high and the chance of claiming is low. It is better for the consumer to be self-insured for long term care. (To read this article, go to the FISCA website, under Article, search for "Eldershield").