Total Permanent Disability Insurance
Total Permanent Disability or TPD Insurance gives you a lump sum amount should you become permanently disabled. That is if you are determined unfit to work again in your occupation or in any other occupation.
The lump sum payment from the TPD can be used for the costs of rehabilitation or debt repayments. It can also be used for other personal or family expenses. The payment will only be made if the disability has been proven for six months and if the insurer has proven that you are deemed unfit for work according to the definition in your policy.
In general, a permanent disability is a complaint that a person cannot recover from. They will have this disability for the rest of their 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 hope of returning to work.
The TPD insurance can be an extension to the term life insurance or own its own. It can also be taken as an extra feature from the super fund and a part of your trauma insurance. Check with you super fund first if you have this cover and how much it is. Then, you will know if it is enough for you and your family.
Also, check if the TPD insurance has restrictions for dangerous work, part-time work, maternity leave and age. Make sure the insurance will cover the needs of your family. To do this, you can consider how long your financial commitments will last. Then, you can seek the help of a financial adviser who will determine the right term for you. The financial adviser will look for a TPD insurance that can complement your trauma, income protection and term life insurance.
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