Only products of the same product type, with a similar definition, and for the same purpose are accumulated for financial assessment purposes.

Typically the following risk / product types are differentiated:

Mortality

Although ADB is a mortality risk, most markets have specific financial guidelines and limits for accidental covers and do not add them to normal life products. Nevertheless, large ADB covers can increase the risk for moral hazard and fraud (e.g. suicide disguised as an accident). Therefore, it is highly recommendable to consider any ADB policies which are outside the normal market standards carefully.

Disability

This includes all forms of disability cover such as TPD, TTD, PPD / Dismemberment, IP, Business Expenses, or even disability income granted in pension funds, by an employer, or from occupational associations. As some types of disability cover are paid out as an annuity, it might be necessary to calculate the cash value of these policies in order to be able to add them to the lump sum payments of other disability products. If and to what extent different forms of disability cover are added together depends on the product definition, purpose (business / personal), and the particulars of the local market.

Long Term Care

As the definition for LTC goes far beyond the criteria for other disability products, most markets consider this product separately and do not add it to other types of disability cover. Usually there is no financial underwriting when it comes to LTC as the need for long term care is independent of income. However, one should still look out for red flags, e.g. if the premium for the product is disproportionately high in comparison to total income, there is a high risk for moral hazard.

Dread Disease / Critical Illness

As the definition for DD / CI is very different from other disability products, most markets view this product separately.