Total Permanent Disability Insurance Tips
Total Permanent Disability or TPD Insurance covers you should you become permanently disabled. Essentially if you you are unfit to work again. It is a lump sum payment that can be used for rehabilitation costs, debt repayments or for other personal and family expenses. The payment is usually made six months after the insured individual is deemed unfit for work.
In general, a permanent disability is an ailment that a person cannot recover from. You will have this disability for the rest of your life. However, insurance companies have varying definitions of a permanent disability. There are common definitions which are the loss of two arms, legs or eyes and absence from work for six months because of an illness or accident and without word of returning to work.
TPD insurance can be taken as a an extension to term life insurance or as a separate policy. It can also be taken as an extra feature from your super fund. Check out first if you have this cover and how much of this cover do you have through a super member statement.
You must make sure that your TPD insurance will cover injuries caused by accidents and sickness, get cover against most disability scenarios. You must also apply for an insurance cover for your line of work. There is a difference between the coverage for your own occupation and any other occupation.
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