The lump sum disability benefit will normally taper down from a member’s full cover to zero over the five year period leading up to the retirement age of a group. It does so on a monthly basis at a rate of 1/60th the value of their benefit.

The reason for this is that lump sum disability is an occupationally linked disability benefit and as a member gets closer to their retirement age so the loss of earnings they will incur due to a disability diminishes.

Some insurers will quote without any tapering but it comes at a cost and if it’s physical impairment or bodily loss cover that you are looking for then there are other benefits that provide this cover too.

Thank you and regards,

The TSA Team

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