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While this feature is normally not available in group disability income insurance coverage, a capital sum benefit option may be available for those with individual disability insurance plans. Capital sum benefits are lump sums payable to the insured for certain specific disabilities. Often a feature within a feature, capital sum benefit provisions tend to be included as part of a presumptive disability rider.
Presumptive disability is normally defined as the loss of eyesight, hearing, speech, or two or more limbs. These conditions may be temporary or permanent in nature. Even a temporary loss of two or more limbs may be covered in some plans. For example, you severely break both legs or an arm and a leg, preventing you from performing your professional duties. This injury may qualify as a presumptive disability if your policy language so indicates.
Should you permanently lose one or more of these defined abilities, and you have a capital sum benefit included in your professional disability insurance, you might be eligible for a lump sum payment (usually equal to 12 monthly income benefit amounts). This payment does not replace but is made in addition to any other benefit amounts specified in your medical disability program.
Carefully read your package of protection along with any exclusions and limitations to learn what benefits you are eligible to receive in the event of a presumptive disability. If offered a capital sum benefit option, consider the cost versus benefit factor to see if this selection would be good for you.
Refer to your insurance policy contract for specific information regarding your coverage and for actual terms, conditions and exclusions. The above statements are general in nature and may or may not reflect the actual terms of your insurance policy.