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Q11. What are the benefits of Disability Benefit plans / Income Protection Plan?
Ans. Disability benefit plans or Income protection plans protect the loss of income

when the insured is unable to pursue his occupation due to injury or illness. IP
policies can be designed with different structure of benefit payments.

The benefit, i.e, income payment during the period of incapacity can be level of
benefit payment to suit the increasing level of salary or inflation. The benefit
escalation may come with increased premium or level premium throughout the
policy term.

In India, this product is currently only available as a component of comprehensive
personal accident policies available from some non-life insurers, and also from
some life insurers as riders called ' Accident and Disability Benefit rider'.

In either case, this provides for a fixed income during the period of incapacity due
to accident subject to a maximum payout period as laid down in the policy. Illness
related Income Protection plans are not yet available in the Indian market.

Q12. What is the purpose of taking long term care plans ?
Ans. Long term care includes all forms of continuing personal or nursing care for people

who are unable to look after themselves without a degree of support and whose
health is not likely to get better in the future. They are divided into three categories:
(i) Personal care costs like the additional costs incurred for being looked after

by nurses or skilled personnel.
(ii) Living costs like food, clothing, amenities etc
(iii) Housing costs.

This policy has been designed to indemnify the insured for the additional costs

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