It is important to remember that life cover, and premiums for life cover, do not always continue after a member receives a disability payout.

In the case of a lump sum disability claim the insurer has ruled that the member is permanently and totally disabled and so they would leave the company and their life cover would fall away. No further life premiums would be due.

In the case of an income protection claim the life cover would only continue if they have the “continuation of life cover during disability” rider benefit. A premium for life cover would still be expected whilst the member was on disability. If this was not selected, however, the life cover would fall away whilst the member was on disability and no premium would be due.

Lastly, remember that premiums must always be paid during the waiting period on disability benefits.

Thank you and regards,

The TSA Team

All information provided in TSA Connect newsletters is intended to inform and explain but please remember to always check the current terms on policies when considering options and advising clients.

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