TPD insurance, formally known as Total and Permanent Disability Cover, is a type of living insurance that ensures you and your family receive the financial assistance you need in the event you become total and permentantly diabled and are unable to work in your normal capacity ever again.
As with other TPD policies in the market, you can apply for OnePath’s TPD cover if you are under 60-years-of-age.
What is a Total and Permanent Disability?
OnePath defines a General Total and Permanent Disability as:
- Loss of eyesight in one or both eyes
- Total and permanent loss of two limbs
- Simultaneous loss of one limb and loss one eyesight in one eye
- Loss of independent existence where a person cannot perform the general activities of daily life without assistance. These include showering, dressing and undressing, eating and drinking, standing and sitting, using a toilet, getting in and out of bed, walking with or without the assistance of a walking aid, or use a wheelchair.
- Cognitive loss for nine consecutive months, whereby a person’s mental capacity has been clinically observed and required ongoing and continuous care.
What does OnePath offer?
OnePath offers several packages with varying levels of cover to suit your budget and lifestyle preferences. Onepath TPD cover pays a range of both total and partial disability benefits. There are different TPD definitions you can choose from.
The Six Types of Cover
- Any Occupation TPD
Pays a lump sum if you can never work again in ‘any’ occupation for which you would be reasonably qualified to do.Insures you for amounts up to $5 million if you are 25% permanently impaired, or are unable to work for three consecutive months and continue to be disabled at the end of this three month period, to such an extent that you:
- Are unlikely to ever work again
- Are unable to engage within any occupation reasonably suited to your level of training education and experience
- Cannot earn a minimum of 25% of your monthly earnings before your injury or illness
- Own occupation TPD
Pays a lump sum if you are unable to work ever again in your ‘own’ occupation.Insures 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. Once again, you need to have been unable to work for 3 consecutive months or 25% permanently impaired, and cannot earn a minimum of 25% of your monthly earnings before your injury or illness within your own occupation. However, in order to be eligible for the lump sum payout, OneCare requires that you inform them of your occupation and advise them of a change in occupation should the event occur.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 them.
- Business TPD
If you’re unable to work for nine consecutive months, and are still unable to work within the occupation you advised OneCare of at the end of the nine month period, you could receive a payout of up to $10 million. Similar to ‘Own Occupation’ TPD, you need to disclose your current occupation to OnePath in order to be eligible for the payout. If you do not, the maximum amount you could receive is only $5 million.
- Home-maker TPD
If you’re injured or suffer an illness that requires medical care and prevents you from performing your regular domestic duties for three consecutive months or more, you could receive a payout of up to $2 million. If combined with the Non-working TPD, you can apply for a maximum of $3 million (not including the Non-working TPD payout).
- Non-working TPD
If your illness or injury satisfies at least one of OnePath’s General TPD definitions, you could receive a payout of up to $5 million. This level of cover is ideal for people who are no longer working, and can be combined with the Home-Maker TPD.
SuperLink allows access to the more generous Own Occupation TPD definition outside superannuation (where there are no access issues), while taking an Any Occupation TPD policy inside superannuation (to make the TPD Cover more affordable).
All of OnePath’s TPD Cover’s have an expiry age.
Generally, Any Occupation TPD, Own Occupation TPD, Business TPD, Superlink TPD convert to Non-Working TPD at age 65, while Home-Maker converts to Non-working at age 100.
One of the main benefits of OnePath’s TPD Cover is the increase in payouts after your 2nd policy anniversary. Own Occupation, Any Occupation and Superlink Any Occupation all offer increases of up to 10% depending on how long you’ve had the policy for, as long as you’re insured for under $5 million.
Want to compare this policy with others? You can compare OnePath’s premiums with other policy providers through our free quote service.
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