Understand that I will receive payout from careshield plus when i am severely disabled. If i am not able to perform ADL does that also mean my TPD Coverage for term should payout too?

Hi anon,

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Yes, current TPD definitions include a payout if you are unable to perform ADLs. Do note that this definition typically ends by the age of 70, reverting back to the usual TPD definitions of loss of use of eyes, hands, feet (any 2 out of 6).

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When it comes to CI, 3 ADL would satisfy the late stage definition of one of the CIs (namely, Loss of Independent Existence), and for most insurers, 2 ADL would satisfy the early stage CI payout criteria for Loss of Independent Existence. This does not apply to CI policies that apply CI definitions earlier than the 2014 version.

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Do note that some insurers have a more lenient 2 ADL definition for TPD, but it applies during a very specific time frame (e.g. age 65 to 70 only), other wise it will be 3 ADL before age 70 for a TPD payout to be triggered.

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TPD payouts are lump sum and do not require on going checks. ADL payouts via Careshield and/or any long term care supplement will require ongoing checks to confirm that the insured still meets the criteria for claim, unless a doctor has medically certified that the severe disability is permanent with no possibility of recovery.

Yes, most insurers have ADLs in their TPD definitions these days. Depending on the insurer and age at claim, it may be unable to perform 2 or 3 ADLs to qualify as TPD.

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It might interest you that "Loss of Independent Existence" or being unable to perform 3 out of 6 ADLs is the 37th CI definition (2019). So one may claim from all 3 policy types (LTC, TPD, CI) if they fulfill the claim criteria.

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Do note while LTC pays out a monthly benefit, TPD and CI benefits are usually paid out in a lump sum.