Total & Permanent Disability Insurance
What is Total and Permanent Disability (TPD) Cover?
Total and Permanent Disability (TPD) Cover, pays a lump sum to you in the event you cannot return to work due to total and permanent disablement. This lump sum can be used to:
- Repay your home mortgage
- Meet ongoing medical needs
- Meet your family’s ongoing income needs.
TPD Cover is generally available to people aged between 17 and 59 and can be either used as a rider benefit to life cover or as a stand-alone cover.
There are two definitions available under Total and Permanent Disability (TPD) Cover:
- ‘Any occupation’ available to all occupations
- ‘Own occupation’ only available to professional and clerical occupations
Do I really Need Total and Permanent Disability (TPD) Cover?
Just imagine that you are unable to work again and earn an income to support your family. You are still alive but you may need ongoing medical treatment and rehabilitation for many years to come. You may even need to modify your family home as a result of your disability. TPD cover will provide a lump sum to assist you meeting these cost and when used in conjunction with Income Protection can provide financial security for your family and you for the rest of your days.
TPD is your financial back-up plan. It gives you the confidence to seize life’s possibilities knowing you’ve made plans to secure your family’s financial future … just in case!
TPD insurance helps you modify your lifestyle and gives you choice and options if you’re left without the ability to work. TPD provides a one-off payment that can help you:
- fund lifestyle changes and home modifications
- cover the cost of long-term care or medical expenses
- pay off any debts including your mortgage
- fund an ongoing income for your family.
How much do you need?
You and your family are unique. So your TPD insurance needs are as well.
There is no set amount of TPD insurance everyone should have, the amount you may need is calculated based on a number of factors, like your:
- income – how much you earn today (and tomorrow!)
- dependants – do you have children or other financial dependants?
- debts – do you have a mortgage, loan or other debts?
- assets – have you accumulated any assets over the years, like property or shares?
To understand your needs, your financial adviser will ask you some questions, so it’s time to start thinking about the future (go on, it’s fun!).
- What does the future look like for you and your family?
- What plans are you making together – that you don’t want to have to break due to finances?
If you would like further information on the products we offer or would like a quote on TPD Insurance please contact us.