What is it?
A lump sum paid to you if you are disabled to the point of not being able to work again.
What are the benefits?
The level of insurance is usually equivalent to your life cover.
The funds can be used to compensate for the loss of earning ability and to pay for lifestyle modifications and care to help you live a life.
It’s essentially a living insurance!
Think about this
If you were disabled to the point of not being able to work again it is high likelihood that you are in a bad way and many lifestyle modifications are required.
Think about paying for carers, accessibility, transport, eating, sleeping, showering, mobility, going to the toilet. Difficult to think about…. but not cheap.
Your alternative is the disability pension which is set at pretty much poverty level.