Members need to feel comforted by the knowledge that should they ever have the misfortune of being disabled their employer will provide some form of financial support. A decision cannot be made for the trustees, as each organisation has specific criteria and employees have different needs. In most cases, the employer contributes towards the risk benefits and would need to ensure that the premium is affordable. A lump sum benefit is usually chosen as it provides the cheapest form of disability cover. However, an income benefit allows employees to receive an income while disabled, and therefore have some form of financial security.
Trustees require sufficient knowledge of the available products to make an informed decision.
Capital disability will pay a lump sum should a member be totally and permanently disabled. The benefit must have the equivalent amount of group life cover. Statistics show that one out of every three to four claims submitted are successful. Only one member of a fund will be paid a benefit and go on ill-health early retirement. The unsuccessful claimants would have to apply for ill-heath early retirement in the hope that the employer accepts their request.