Total and Permanent Disability insurance (TPD) provides a lump sum payment in case you are totally and permanently disabled and are unable to work again. It can cover the cost of rehabilitation, repayment of current debts, and the cost of living for you and your dependants.
Wealth Smart compares leading TPD insurance policies to help find TPD cover that is right for you and fits your family’s budget. We can guide you through the many options available and help you achieve peace of mind and a secure income for your family, regardless of what the future holds.
TPD insurance is usually purchased as an optional extra on a Life Insurance policy, with the amount of cover that you can buy usually limited by the amount of life cover that you have purchased. Disability insurance payments usually begin only when the disability has been evident for a minimum of six months, and the insurer has deemed you unlikely to gain employment again based on the definition that applies to your individual policy.
Total and Permanent Disability insurance can be relatively cost effective and offers lower premiums than other types of health insurance. Whilst the level of coverage provided is similar across different providers, premiums can vary according to:
Although most policies offered are similar, make sure you read the insurer’s product disclosure document (PDS) completely to check which conditions are excluded.
There are two basic options of TPD insurance coverage available: Any Occupation and Own Occupation. They are defined as follows:
TPD premiums are also not tax deductible. But the benefit paid to the injured individual is itself tax free (i.e. not covered by superannuation law).
TPD insurance is of particular value to individuals with life circumstances or occupations where specific abilities are important, such as those involved in manual labour, problem solving or a high degree of physical coordination. TPD insurance can:
Find out more about TPD insurance by reading further here, or contacting on of our experienced advisers today.