MLC Total and Permanent Disability Insurance

MLC Total and Permanent Disability Insurance

TPD insurance is a type of living insurance that ensures you and your family receive the financial assistance you need in the event that you’re diagnosed with a total and permanent disability (TPD). If you’re prevented from working in your normal capacity ever again, TPD Insurance provides you with a lump sum payment to cover the costs of changing your lifestyle, as well as keeping up with your daily living expenses.

What does MLC offer?

Those aged between 19-60 are eligible to apply for MLC’s TPD Insurance.

You can choose your total sum insured – an amount between $25,000 and $2 million – and choose to pay on either a stepped or level premium basis. Your occupation will largely determine the amount of insurance you can apply for. For example, high-risk occupations can’t apply for the same insurance amount as white-collar workers.

MLC’s TPD Insurance pays a lump sum for disabilities caused by illness or injury. However, there are two types of TPD definitions to choose from when applying. When choosing MLC’s TPD Insurance, close attention needs to be paid to these definitions so you receive the right amount of insurance for your circumstances and budget.

The TPD definitions

MLC defines your ability to work depending on whether or not you are ‘gainfully employed’ (working for earnings, payment or profit), when your disability begins, and whether you are insured under the Any Occupation or Own Occupation definition. The definition used to assess your claim will be the one closest to your circumstances.

You can choose from two TPD definitions. The choice you make will determine your eligibility for a claim should you become disabled and unable to work.

  • Any Occupation TPD
    If you choose this definition of TPD, MLC will assess your ability to work again based not only on your most recent occupation, but any occupation you could possibly work in.
  • Own occupation TPD
    When you select this definition of TPD, MLC pays you if you’ve suffered an illness or injury and can no longer perform your usual working duties in the most recent occupation you engaged in prior to your illness or injury. This means you may be eligible for your TPD insurance benefit if you can’t work in your own occupation, even if you may be able to work in another occupation.

You’ll be charged a higher premium if you choose Own Occupation.

Not all occupations are eligible for this definition.

The main advantage of Own Occupation TPD over Any Occupation TPD is that it gives you a greater chance of receiving a benefit if you make a claim. 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.

If you become disabled while your insurance is active, and you are not gainfully employed but are a stay-at-home parent, MLC will assess your right to claim based on your inability to perform normal physical domestic duties, such as cleaning, cooking, laundry, and taking care of dependent children.

What events trigger a payout?

MLC considers you totally and permanently disabled if:

  • You suffer from a sickness or injury that means you’re unlikely to work ever again, and these circumstances have existed for at least 3 consecutive months, or
  • You’re sickness or injury results in at least 25% permanent impairment so that you are completely unable, and are unlikely ever to be able, to work according to your chosen occupation definition, or
  • You suffer from the total and irrecoverable loss of use of your hands, feet, sight in both eyes, or a combination of these.

What’s included?

  • 12-month life cover buy-back
    If you purchase your TPD Insurance as an extension of your Life Cover Insurance, any claim you make on your TPD Insurance can affect your Life Cover. With this benefit, you can restore your Life Cover Insurance 12 months after receiving your full TPD Insurance benefit.
  • Partial payment benefit
    MLC will pay you up to $500,000 or 25% of your total sum insured if you lose the use of one limb or your eyesight.
  • Increases without further medical evidence
    You’ll be able to increase your total sum insured if you experience certain life events, all without providing any medical certification.
  • Financial planning benefit
    When you’ve been paid a sum of more than $100,000, you might need professional advice about investing or spending your money wisely. MLC will reimburse the cost of financial planning advice up to $5,000.
  • Economiser
    You can request to have your TPD insurance stepped premium frozen if you’re aged 30 or over. The premium you pay then stays the same, while your benefit will reduce each year.
  • Death Benefit
    If you die within 14-days or becoming totally and permanently disabled, MLC will pay your nominated beneficiaries an extra $5,000 in addition to your TPD lump sum payment.

For an extra cost, you can also choose to increase your TPD insurance for business purposes.

Want to compare other TPD insurance policies? You can compare MLC’s policies with other insurance providers through our free quote service.

Page last updated: April 12, 2014