Term life insurance does not cover disability, which is distinct from life insurance that serves beneficiaries after death. While optional disability riders can be added to life insurance policies to waive premiums during disability, they do not provide the comprehensive income protection that standalone disability insurance offers. It is recommended to consult financial advisors to understand the best options for disability coverage.

1. Does Term Life
Insurance cover
Disability?
01.

2. 02.
Many procrastinate and put off
talking about obtaining an
individual disability insurance
policy, but it’s something one
should always keep in mind.

3. This rings especially true if you and your
dependents rely on your ability to earn a
paycheck. When you’re in a position that
prevents you from earning a regular
income, tough times are likely to follow.
Just because you have term life
insurance, it doesn’t mean that
your life insurance coverage is
going to cover everything.
03.

4. What is
Disability
Insurance?
04.

5. 05.
This is different from a life insurance
policy, as life insurance policies are
focused on helping the estate or
beneficiaries after the policyholder is
deceased. There are certain disability
riders you can add to term or whole life
insurance at the time of application to
give you more protection should you
become disabled. But, they do not
offer the breadth and customization of
individually owned disability insurance.
Individually owned
Disability Insurance
is particularly
designed to provide
income protection
to those who have
lost income due to
an injury or illness.

6. No, a life insurance policy does not cover
disabilities. This is true whether it is a
term life insurance policy or a whole life
insurance policy. But, there are different
ways your life insurance policy can
protect you through optional riders.
Does Term Life Insurance
cover disabilities?
06.

7. 07.
Under this rider, life insurance
premiums are waived if the life
insured suffers a permanent total
disability. Total Disability Waiver
of premium covers disabilities
due to accidents as also those
suffered due to illnesses.
Total Disability
Waiver of
Premium Rider

8. 08.
not be able to perform essential duties of their
occupation,
not be engaged in any other occupation, and
be receiving medical care for the condition that has
caused total disability.
To claim under this rider, the life insured must:

9. 09.
Key Points to Note:
Generally, disability waiver riders only pay out after the individual
has been totally disabled for at least 4 or 6 consecutive months.
The premiums can be waived retroactively, including for the
initial 4 or 6-month waiting period.
The rider is valid until a certain age of the person to be insured,
most often up to the age of 60 or 65.

10. 10.
A Disability Income rider provides
monthly payments to the life insured in
the event they become disabled and
unable to work. The policyholder will
need to choose the time period for
which the payments are to be made
and the monthly payment (which is
usually capped). This rider typically has
a 30 or 90 day waiting period, with
retrospective payments that start after
the waiting period is over.
What is a
Disability
Income Rider?

11. Talk to our experienced financial
advisors to know more about your
Disability Insurance options.
Is it better as a standalone plan or
as a rider? Find out by talking to our
advisors.
11.

12. 18558687878 csteam@trustlife.ca
www.trustlife.ca