Total and Permanent Disability (TPD) insurance provides a lump sum benefit in the event of suffering from an injury or sickness, where the insured is unable to perform their own or any occupation for which they are suited by training, education or experience. Proceeds can be used to pay for medical costs, home modification, repayment of loans or used for living expenses.
Total and permanent disability (TPD) insurance provides cover if you are totally and permanently disabled. Your insurer will define TPD as either when you:
TPD insurance helps cover the costs of rehabilitation, debt repayments and the future cost of living.
Each insurer has different definitions of what is and isn’t considered to be totally and permanently disabled. Being off work for a year is NOT ‘permanently disabled’. Ask lots of questions so you know exactly what you’re getting.
Be cautious of advertisements offering disability cover with no medical checks. This type of cover can be very limiting – that’s why it is cheap.