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Total & Permanent Disablement Insurance

Purpose

TPD when you have selected an own occupation pays a lump sum payment if you are disabled and can’t return to work in your own or similar occupation.

How Does It Work?

It is a benefit where you choose the amount you are covered for, the benefit is then paid out on proof of you never being able to return to your occupation again. TPD payouts have been used to supplement income, make home modifications or to pay excessive medical expenses.

How Do I Calculate How Much I need?

The amount you insure yourself for is generally determined by taking into acccount your financial dependents, your debts and your living expenses. It can depend on your life stage or whether it is for a business purpose. Some personal calculations generally include covering debt, covering an ongoing income or a multiple of salary.

Policy Definitions

It is important to consider the definitions that are appropriate for you with TPD insurance.  When applying for TPD you have a choice between own occupation and any occupation, the former pays if you are unable to work in your OWN occupation based on experience and qualifications.  Many people have TPD within their super fund however this is generally an ANY occupation policy and is harder to claim on.

Another important aspect is the timeframe required for proof, some companies have a 6 month definitions and others have a 3 month.

Application Stage

Disclosing your duties within your occupation is essential for TPD, often applicants rush through an application and don’t expand on their specific duties.

Claims

TPD is a difficult policy to claim on as it requires the most amount of evidence for it to be successful.  The insurance company needs to see evidence that you are unable to carry out your duties in a reasonable manner

Pay Attention To:

Expiry date
Definitions of benefit
Qualifying period
Own or any occupation

[Click here go to TPD Case Study]