What is TPD insurance?
Total and Permanent Disability insurance, often abbreviated to TPD, provides the insured with a lump sum in the event he or she is deemed to be unable to work ever again due to either sickness or accident.
A permanent disability can place enormous strain on a family’s financial position. Not only from a loss of income perspective, but equally from the many additional costs that come with being disabled, some of which can stay with you for a number of years.
TPD insurance is designed to help you and your family cope financially in such a situation.
What this means for you
The financial support provided by TPD insurance can help you rebuild your life, and maintain your standard of living, in the wake of a permanent disability.
Some of the things a TPD insurance benefit can help you achieve include:
- Debt elimination or reduction
- Covering your out-of-pocket medical bills and rehabilitation expenses
- Paying for any ongoing assistance or care you need
- Providing for any additional housework or child care costs
- Allowing you to modify your living arrangements if you need to.
For working people, TPD insurance is often complimented with a suitable Income Protection policy to provide ultimate cover in the event of a permanent disability.
Some policies may require that you are permanently unable to work in any occupation, regardless of your employment background. Others may be more liberal, and only require that you are unable to work in any occupation for which you are reasonably suited by training, education or experience. The most flexible policies may pay a benefit if you are permanently unable to work in your own occupation only — recognising that you may not be able to earn as much in any other occupation.
TPD can be combined with Life and/or Trauma insurance or can be written on a stand-alone basis. It can also be written within or outside of superannuation.
To make sure your TPD policy suits your needs and budget, you should weigh up your options with us.
Contact us today to arrange a time to discuss how we can assist with your insurance requirements.