Total and Permanent Disablement (TPD) can prevent you from working and require expensive medical treatment and ongoing care.
TPD insurance aims to provide a lump sum if you suffer an illness or injury and you:
- Are permanently unable to work again
- Are unable to care for yourself independently
- Suffer significant and permanent cognitive impairment
TPD insurance pays a lump sum which can be used to pay for medical expenses, ongoing care costs. This can also assist in providing an ongoing income stream to replace the money you would have earned if you were able to work.
The definition of TPD can vary and may include options for a range of occupations, including homemakers. Options that you can choose from include:
Any Occupation TPD: The benefit will be paid if you are unlikely to be engaged in any gainful business, profession or occupation to which you are reasonable suited by your education, training or experience. This definition is generally less expensive than an Own Occupation definition but for some people may be harder to meet.
Own Occupation TPD: The benefit will be paid if you are unlikely to ever be engaged in your own occupation. Own Occupation TPD provides a generous definition as it is specific to your occupation and is particularly suitable for specialist occupations. The premiums for this type of definition are more expensive than Any Occupation TPD.
You should discuss your circumstances with your financial planner.