If a sickness or injury left you unable to work and earn an income ever again, finding a way to support yourself would go beyond your health insurance and life savings. Known as a total and permanent disablement, the effects this condition can have on your livelihood are more than financial, and can often leave you unable to care for yourself. More than that, the effects on your family can mean a future of financial instability, particularly if you’re the main income earner.
If you want to ensure that you and your family can look forward to a high quality of life, Total and Permanent Disablement (TPD) Cover is an excellent back-up plan. If you’re diagnosed as unable to work every again, Asteron Life will pay you a lump sum amount of up to $5 million. You choose this amount when you apply for your cover, and it can be used to pay for medical bills your health insurance can’t cover, make modifications to your home to accommodate your condition, and even assist with ongoing expenses like paying off your mortgage.
Asteron Life TPD cover can be purchased either as a stand-alone policy, or linked to your Life Cover. If purchased as a stand-alone policy, any claim made against your TPD Cover won’t affect any of your other Asteron Life policies, if you hold any. If linked to your Life Cover, any claim made against your TPD will affect your total sum insured, and affect your other covers.
What is a Total and Permanent Disability?
When you apply for your TPD Cover, you choose the definition you want to be assessed against. The type of cover provided by each definition is different, as is the premium you pay.
Some of the conditions Asteron Life uses to assess a TPD are:
- Loss of limbs
- Loss of speech
- Major head traumas
- Lung failure
The TPD definitions
Any Occupation TPD
Covers you if:
- You’ve been unable to work for at least 3 months or more and unable to work ever again in any occupation.
- You’ve suffered from one of Asteron Life’s defined medical conditions, including blindness, chronic lung failure, major head trauma, loss of speech, paralysis or motor neurone disease.
- You meet the Modified TPD definition.
Own occupation TPD
You’ll receive a lump sum benefit if:
- You’ve suffered from a loss of limbs, eyesight, speech, cognitive impairment, lung failure, a head trauma, paralysis or one of Asteron Life’s other medical conditions.
- You’ve suffered from cognitive impairment.
- You’re unable to do 2 or more activities of daily living.
- You suffer from one of their defined medical conditions.
- You’ve been unable to work for 3 months or more, and you’re unable to work ever again in your own occupation.
- You’re unable to perform normal domestic duties, such as laundry, cleaning or cooking.
The main advantage of Own Occupation TPD over Any Occupation TPD is that it gives you a greater chance of receiving a benefit at claim time. This is because you’re more likely to be considered permanently disabled if you’re ability to work is being assessed against your most recent or existing occupation at time of claim, rather than any occupation that may be suitable for you.
Covers you if:
- You’ve suffered from a loss of limbs or sight
- You’re unable to perform 2 activities of daily living without assistance
- You suffer from cognitive impairment
If you’ve suffered from a sickness or injury for 3 months or more, and you’re fully engaged in normal domestic duties that you can no longer perform, Asteron Life will provide you with your total sum insured. This means that you’ll be able to hire in-home assistance, such as a cleaner or a nanny.
What does Asteron Life TPD Cover include?
In addition to your TPD benefit, Asteron Life TPD Cover also offers:
- Single loss of limb or eye benefit
Asteron Life will pay you 25% of your total sum insured if you lose the use of a limb, or lose your eyesight in one eye.
- Limited Death benefit
If you die while you cover is active or are diagnosed with a terminal illness, Asteron Life will pay your family a benefit of up to $20,000, even if you have Life Cover.
- Financial planning benefit
If you need to seek financial advice after receiving your benefit, Asteron Life will pay you up to $2500 to cover the costs of seeking professional counsel.
- Premium and cover suspension benefit
If you experience financial hardship and can’t afford to pay your premiums, Asteron Life lets you suspend your premiums and cover for up to 1 year.
- Premium freeze option
Don’t want your premiums to increase every year? You can ensure your premiums stay the same.
- Continuation of cover
Generally, your cover ends when you reach age 65. With this option, you can apply to continue your cover until you reach age 70.
- Conversion benefit
You can convert your Asteron Life TPD stand-alone cover to Asteron Life Life Cover that’s linked to your TPD Cover. You can do this when certain life events occur, such as a marriage, birth of a child, or an adoption.
For an extra cost, Asteron Life lets you add a few additional features to ensure you receive the best level of cover that suits your lifestyle. You can increase your TPD when certain business events occur, include your children in your cover, and waive your premiums if you’re partially disabled.
Want to compare this policy with others? You can compare Asteron’ Life TPD Cover with other policy providers online here.
© 2012 Wealth Smart Life InsurancePage last updated: April 12, 2014