Total and Permanent Disablement (TPD) can prevent you from working and require expensive medical treatment and ongoing care.
TPD insurance aims to provide a lump sum if you suffer an illness or injury and you:
- Are permanently unable to work again or
- Are unable to care for yourself independently, or
- Suffer significant and permanent cognitive impairment.
TPD insurance pays a lump sum which can be used to pay for medical expenses, ongoing care costs and to meet living expenses for you and your family.
The definition of TPD can vary and may include options for a range of occupations, including homemakers. Options that you can choose from include:
Any Occupation TPD: The benefit will be paid if you are unlikely to be engaged in any gainful business, profession or occupation to which you are reasonable suited by your education, training or experience. This definition is generally less expensive than an Own Occupation definition but for some people may be harder to meet.
Own Occupation TPD: The benefit will be paid if you are unlikely to ever be engaged in your own occupation. Own Occupation TPD provides a generous definition as it is specific to your occupation and is particularly suitable for specialist occupations. The premiums for this type of definition is more expensive than Any Occupation TPD.
You should discuss your circumstances with your financial planner.
When looking at amounts of TPD cover, things you might want to take into account are;
- Clearing all debt
- Providing for ongoing educational/childcare expenses for your children
- Providing for incidental and medical expenses not covered by private health insurance
- Living Expenses
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