What is Total and Permanent Disability Insurance (TPD)?
Total and Permanent Disability Insurance provides you with a lump sum benefit in the event you suffer a total and permanent disability and are unable to ever work again and earn an income.
How much Total and Permanent Disability can I buy?
This lump sum of money is usually made up of the following:
- A lump sum to pay out any debts. Usually, includes home mortgage, car lease, personal loans etc.
- Plus a lump sum of money you and your family could invest so you can live off the proceeds.
- Plus any medical and rehabilitation costs.
Not sure how to calculate the correct lump sum you need? See our easy to use Life Insurance and Total and Permanent Disability calculator, or speak to one of our advisers.
How do you own a Total and Permanent Disability Insurance policy?
You can purchase your Total and Permanent Disability Insurance with your Life Insurance policy. This is commonly done with your superannuation plan as you can use your super fund to pay your premiums.
Although in some cases it may be better to own your TPD insurance outside of superannuation and/or own the policy as a stand alone plan. This can be rather complex, so speak to one of our advisers who can recommend the best way for you to own your policy.
Claiming your Total and Permanent Disability Insurance benefits?
Essentially to claim on a Total and Permanent Disability policy you will need to satisfy the following definition:
That is, due to a sickness or injury you are unable to work in any occupation to which you are trained by education or experience. Life Insurance companies vary their definitions of what determines a total and permanent disability. However, typical definitions would include:
- Own occupation – this is where you are unlikely to ever work in your own occupation again. This is easier to claim and therefore a dearer premium would apply.
- Any occupation – this is where you are unlikely to ever work again in any occupation to which you are trained by education or experience. This is easier to claim and the premiums are generally cheaper.
Other ways Life Insurance companies can confirm you have met their definition for TPD is:
- Loss of two of eyes, arms or legs or one eye, one arm or one leg.
- Have been absent from work for a continuous six months due to an accident or sickness. Some companies now also offer a 3 month term.
Should you need to claim, we provide a priority claims service to help you in your time of need. This can prove invaluable. See what some of our other clients are saying – testimonials.
Do I need TPD Insurance if I have Income Protection Insurance?
Well that depends. In most cases we would recommend you have all types of personal insurance included in your financial plan. These include:
Although TPD is very different from Income Protection Insurance in that TPD will generally only pay you one lump sum benefit, whereas Income Protection will pay you a regular monthly benefit till you are able to go back to work or you have reached your benefit period. See our income protection page for a full description of Income Protection Insurance or speak to one of our advisers today.
Compare total disability insurance quotes
– Who offers the best Total Disability Insurance in Australia today?
Again that depends and varies greatly. Australian Life Insurers are always changing the features and benefits offered in their Life Insurance policies so the right answer really depends on what you are looking for.
So make sure when you speak to one of our advisers you explain exactly what you want to achieve. We can then help steer you in the right direction.
We offer a free online Life Insurance Broking service that can compare Total Disability Insurance policies from AMP right through to Zurich. Here is a sample range of insurance benefits we have compared in the past.
But as Life Insurance specialists and Financial Planners our service is not limited to comparing current policies like other internet brokers. We can also compare old discontinued total disability insurance policies.
So make sure you enter your details in our life and total disability insurance quote form and we will provide you the advice so you can make an informed choice.
Remember to include any additional information you may want us to consider.
