What is typically paid in the event of permanent total disablement?

In the case of permanent total disablement, it is common for an insurance policy to provide a capital sum or a structured payment such as a ten-year annuity. This is because permanent total disablement often results in a significant impact on an individual's ability to earn an income or perform daily activities. Therefore, insurers typically offer a lump-sum payment or a fixed annuity to ensure that the individual receives financial support for a substantial period, reflecting the long-term consequences of the disablement.

A capital sum provides immediate financial relief, allowing for immediate medical and personal care needs or changes to lifestyle that the individual might require. In addition, an annuity payment over a specified period, such as ten years, facilitates a steady income stream that can assist in managing living expenses following the loss of income due to disablement. This approach helps address both the immediate and long-term financial impacts of such a life-altering situation.