You should read and understand the policy contract and product summary which set out the terms and conditions of the policy, such as the following:
1. Coverage period (for whole life DPI)
Insurers may either set a maturity age (e.g. age 99 or 100) when all benefits would be paid out, or pay the benefits only upon your death or diagnosis of a terminal illness, even if this occurs beyond age 99 or 100.
2. Premiums for TPD coverage
The coverage for TPD lasts up to a maximum age of 65.
The premiums that you pay may change throughout the premium payment period, depending on how the insurers price the TPD coverage.
a. If the TPD coverage is priced separately from the main DPI, the premiums will be reduced once TPD coverage ends after age 65.
b. If the TPD coverage is priced as part of the main DPI and spread out equally over the entire premium payment period, the premiums will remain the same even though TPD coverage ends after age 65.
3. Exclusion clauses
Different insurers may have different exclusion clauses which state the situations when benefits under the DPI are not payable. For example, some insurers may not pay out the TPD benefit if the policyholder becomes totally and permanently disabled arising from travel on a non-commercial aircraft. Some insurers may void the policy contract if the policyholder’s death arises from any criminal activity; or an act of war (whether declared or not). You should read the product summary and policy contract to find out what these exclusions are and whether the DPI meets your needs.