Total and Permanent Disablement (TPD) insurance provides a lump sum if you suffer a sickness or injury that leaves you totally and permanently disabled. TPD insurance benefits are often used to remove debts, pay for medical expenses or home modifications or fund any permanent lifestyle changes resulting from disablement.
TPD insurance can usually be taken as an addition to a term life policy. It can, however, also be established as stand-alone cover. A lump sum benefit is generally paid when medical professionals have established that, in their opinion, you will never be able to work again.
The difference between “Own” and “Any” TPD definitions
The definitions of TPD can vary between insurers, and it is strongly recommended that you examine these conditions before you apply to ensure that they comply with what you believe would prevent you from working again.
There are generally two types of TPD options available: “own” occupation or “any” occupation.
• Own occupation provides a TPD benefit if you are unable to work again in your own occupation.
• Any occupation provides a TPD benefit if you are unable to work again in any occupation for which you are suited by education, training or experience.
How much does it cost?
Premiums for TPD insurance are affected by factors such as age, health, smoking habits, hazardous activities and occupation. Upon making a claim the insurance provider may also wish to have you examined by their own private medical professionals to ensure that your claim is valid.
Do you need term life or TPD insurance?
When considering term life or TPD insurance, you must consider a number of factors such as your current level of debt, the importance of your income to support ongoing living expenses for your family and any future expenses you anticipate, such as funeral costs, children’s education expenses, and medical bills. You can use various formulae to calculate the appropriate level of insurance for you. They take into account your age, the age of your dependants, your current income, and your lifestyle and debts including a mortgage. When considering insurance if you do not earn an income (e.g. you are a homemaker), you must remember that the surviving spouse will have two choices if you die. They can take leave from their own job to look after the household or employ someone else. Both of these options require funds to cover the expenses involved and both will have a negative impact on household income.
How much is enough?
How much Total and Permanent Disability insurance you require depends on a number of different factors. We can assist you to accurately assess your circumstances and calculate the appropriate level of cover to protect you and your family.
Give us a call on 07 3812 7122 to book an appointment.