Total and permanent disability (TPD) insurance provides cover if you are totally and permanently disabled. Your insurer will define TPD as either when you:
You can’t work again in any occupation, or
You can’t work in your usual occupation
TPD insurance helps cover the costs of rehabilitation, debt repayments and the future cost of living.
Why do you need TPD Insurance?
It pays a lump sum if you suffer a major illness or injury – but only if you are permanently no longer able to work, or in some cases if you can no longer perform the normal activities of daily life. You can choose whether to insure against being unable to do the work you do now (‘own occupation’ cover) or against not being able to work again in any capacity. Own occupation cover will usually be more expensive, especially if your job involves physical labour.
If you are medically unable to work you can make a claim on your TPD cover regardless of the cause of your disability, unlike trauma cover which will only pay for specific illnesses.
What if you need to claim?
You can make a TPD claim if you satisfy the conditions set in the policy by the insurance company or super fund that holds your cover. This usually involves showing that you’re no longer able to work. Insurers will typically look at the following criteria when assessing TPD claims:
Level of disablement
Is your cover held inside super?
What definition do you have – Is it ‘Any’ or ‘Own’ occupation?
Does the policy have any waiting periods?
Can you perform any activities of daily living?
Your financial advisor is there to help you. Please give them call to discuss your needs or if you need to make a claim?