Total & Permanent Disability Insurance – also know as TPD Insurance – is a type of life insurance which protects you against major illness and injury.
TPD insurance covers you when you suffer a serious illness or injury, and in a medical professional’s opinion you are unlikely to ever return to work.
Common conditions covered by TPD insurance include paraplegia and quadriplegia, but there are hundreds of other illnesses, injuries and conditions that can also trigger a TPD insurance claim.
Benefits of TPD Insurance
The payout from a TPD insurance policy can bring major benefits to the policy holder in the event of a major incident.
The funds can be used to ease financial stress by covering your income, repaying your debts and providing additional income for living.
Also of great benefit is the large amount of cash that can be put towards rehabilitation, as well as home and car modifications to make life easier once you’ve lost your mobility or are suffering from any other disability that changes your life.
Types of TPD Insurance
There are two different types of TPD insurance – ‘own occupation’ and ‘any occupation’. These are known as ‘definitions’.
More information will be added shortly regarding the complex differences between these two TPD insurance definitions, but basically the differences are as follows:
Own Occupation – This covers you if you can no longer work in your own occupation.
Any Occupation – This covers you if you can no longer work in any suitable occupation.
The definition on your TPD insurance can have a huge effect on your ability to claim, and whilst an ‘own occupation’ policy will have higher premiums, you would also expect to be able to claim on this policy much more easily.
TPD Insurance Australia
TPD insurance is becoming more and more popular in Australia, and is right up there with life insurance and income protection for many Australian families.
Most life insurance companies in Australia offer TPD insurance, but the policies can differ from company to company, and it is important to do your own research to make sure the TPD insurance policy you choose is right for you.
If you don’t have time to do the research yourself, of course a licensed financial adviser will be happy to do all the hard work for you, and in most cases their service won’t cost you any extra.
TPD Cover
TPD insurance is important for anyone who relies on their income to live, especially if they have large debts and a family to support.
This form of insurance is very affordable, is easy to obtain, and should definitely be a part of your insurance portfolio.