Risk Cover Update: The ADL Benefit

insurance disability coverPersonal insurance goes much further than basic life cover, and in today’s uncertain world it is fast becoming a necessity for all of us.

If you are still only covered by a life insurance and funeral cover policy, you should consider including impairment and disability cover in your portfolio. As tragic as the loss of a loved one is, the financial implications are not necessarily negative as long as the person has a life insurance policy. A disability can be far more costly, as the breadwinner may no longer be able to work and may need nursing or extensive medical treatment in addition.

Most disability cover policies are quite clear about the medical conditions they consider debilitating. Most of these illnesses and conditions are what you would expect: severe illnesses and physical disabilities that would prevent you from working or leading a normal life.

What if Your Condition Isn’t Part of the List?

When you take out your disability insurance, you obviously have no way of knowing whether you will ever suffer from a debilitating illness – and of course you will be hoping that this never happens. However, in the unfortunate scenario where you do fall seriously ill or are disabled, imagine your frustration if the condition you were suffering from was not classified as debilitating by the insurance company.

Fortunately, there is a requirement that all insurers have to adhere to that would protect you in a situation like this. The Activities of Daily Living (ADL) benefit means that you will be paid out for any condition that takes away your ability to perform basic tasks like dressing and washing yourself, or any basic activity that forms part of the basic routine we all follow.

The ADL benefit protects you, the policy holder, and ensures that you will be paid out should you become disabled or debilitated. Speak to your financial advisor who will check the maximum benefits payable by different insurance companies on different policies.

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