What is Total Permanent Disability Insurance?
Total and Permanent Disability Insurance (TPD) is designed to help take the pressure off you financially if you suffer an illness or injury that leaves you totally and permanently disabled. The lump sum benefit paid is often used to eliminate debts, pay for medical expenses or fund permanent lifestyle changes.
There are two main definitions of TPD Insurance. They are, “being unlikely to be able to work again in your ‘own occupation’ following an illness or injury” or, “being unlikely to be able to work again in ‘any occupation’ following an illness or injury.”
Under these definitions, depending on the type of your injury/disability, will determine your payout. If you are not able to work in your own occupation anymore, but are able to work in a different occupation with your education, certificates and experience you may not receive a payout. This is why it is important to speak to a broker to figure out what is best for you and your current occupation.
Why do we use it?
Your family has to continue to meet living expenses and debt obligations without your income and they may also have to pay for any costs associated with your injury/disability such as medical fees, home modifications and ongoing care. TPD Insurance will provide a lump sum which you and your family can use to repay debt and/or draw down on over time.
TPD policies can offer you specific cover if you can no longer perform the duties of your regular job.
Who is it for?
- People working in
- People with high debts to pay
- People who run their own business
- Young people at risk of accident related trauma
- People who play