What distinguishes ITP/IDPAC coverages from IAD in life insurance?

Need life insurance? Talk to the insurance brokers at Poupança no Minuto and take care of choosing the best insurance for you, for free and quickly. Or first understand how the coverage of this product works, then.

Firstly, what do ITP, IDPAC, and IAD mean?

In general, a life insurance aims to protect the policyholder from unforeseen situations, that prevent them from paying their debts. One of the coverages that is always included in this insurance is the death of the policyholder.  

Along with this coverage, there are other options to choose from, with the most common being Total and Permanent Disability (ITP) / Permanent Disability for Compatible Profession or Activity (IDPAC) and Absolute and Permanent Disability (IAD).

Both are similar, but they differ in aspects that can have an impact when activating the claim. Let's see what they are.

ITP - Total and Permanent Disability or IDPAC - Permanent Disability for Profession or Compatible Activity.

Hiring a Total and Permanent Disability coverage means that you can activate the life insurance if the insured person is left with a degree of disability equal to or greater than 60%, due to illness or accident. It can also be contracted at percentages of 55% and 65% according to each insurer's tables.

This is when disability prevents you from earning income through professional activity and paying your expenses. Therefore, by activating the insurance, the insurer is responsible for paying the agreed insurance amount when signing the contract.

Absolute and Definitive Disability

Already hiring an Absolute and Permanent Disability coverage means that it is possible to activate the life insurance if the insured person has an incapacity equal to or greater than 80%, resulting from illness or accident.

This disability is equivalent to a "vegetative state", in which the insured becomes dependent on third parties to meet vital needs such as eating, dressing, hygiene, among others.

In this case, when claiming the benefit, the insured is entitled to compensation from the insurer for a financially comfortable life.

In other words, the ITP/IDPAC coverage is more comprehensive as it covers a minor (and more common) disability, while the IAD coverage implies a more extreme disability.

This coverage is usually mandatory when taking out a life insurance associated with a mortgage credit. This is so that banks can protect themselves and receive back the loan amount in case these unforeseen events occur with the credit borrowers, on the part of the insurer.

What are the differences between the two coverages?

The main difference between the two coverages is the degree of disability that each one covers.

While the ITP/IDPAC coverage covers a disability equal to or greater than 60%, the IAD coverage encompasses a disability equal to or greater than 80%. And, as mentioned above, IAD is mandatory in most cases when associating life insurance with housing credit. insurance of life housing credit.

In addition, the ITP / IDPAC coverage, having a more comprehensive protection, is generally more expensive than the IAD.

However, keep in mind that if you are taking out life insurance as part of a home loan, the bank may reduce the amount you pay in monthly installments if you choose the IAD coverage option.

Knowing which coverage to choose when taking out life insurance can be challenging, especially if it is linked to your mortgage, which can last 40 years and may encounter unexpected events by then.  

Therefore, it is essential to choose the right insurance policies, above all, suitable for you, your family, and respective context.  

In this sense, it is always important to request more than one proposal from different insurers and with various modalities. This is so that you can evaluate the needs and different costs, and, in the case of housing credit, which proposal has the least impact on the monthly payment of the credit as well.

To do this, you can (and should) always ask for help from a professional who guides you, such as insurance mediators from Poupança no Minuto. The service is free and they ensure that you make the best insurance decision for yourself. Visit Poupança no Minuto.