What is Total & Permanent Disablement (TPD) insurance? - By Richard Toon

It’s about looking after you and your family’s future if you become totally and permanently disabled and are unable to work as a result of an accident or illness. Why do you need it? Permanent disability might not only prevent you from working and earning, but it could also substantially increase the cost of maintaining a comfortable lifestyle for you and your family. With TPD Insurance you will get a lump-sum payment which can assist with your mortgage, cover medical expenses, home alterations or modifications to your car, or other bills so you can focus on adapting to you new world. You can use the lump sum payment to pay for your spouse or family member to take time off work to care for you. Many people require extra help and support when they are dealing with a serious illness or injury.

There are two major definitions of what Total and Permanent disability is:

Own occupation: This option is where it becomes unlikely that you’ll ever be able to return to work in the specific occupation you were involved in immediately prior to incapacitation.

Any occupation: Being so incapacitated that it’s unlikely you’ll ever be able to work, in any occupation for which you are reasonably suited by education, training or experience, and which would pay you more than 25% of your pre-disability earnings during your last 12 months of work.

If this sounds complicated, you can bet your bottom dollar it certainly is complicated. If you want to ensure that you apply this type of insurance to the right circumstances always seek some trusted and qualified advice. It will save you heaps of premium in the long term.

Speak to one of our qualified Financial Advisers to find out more.