The Permanent Total Disability Provision in Life Insurance Policies

There are many reasons for bringing this subject to the attention of the members of this Society hut principally because of the similar elements found in the contracts of non-cancelable accident and health insurance with which you are more familiar. The conditions under which these two coverages are written, however, differ considerably. The permanent total disability provision is a part of a life insurance contract and is not written separately. This fact is of considerable moment when one considers the element of selection. In order to obtain the permanent total disability provision the applicant must pay the relatively larger premium for the life insurance feature of the contract. (The disability income and waiver extra premium on the average is perhaps 10~0 of the total premium charge.) In order to obtain a relatively large monthly income under the disability provision it is necessary to make a very considerable investment in the life insurance contract. This in itself to some extent safeguards the insurance company against adverse selection. The non-cancelable accident and health contract has not, of course, this protection.