Total and Permanent Disability (TPD) is a lump sum benefit that is generally paid when medical professionals have established that, in their opinion, you will never be able to work again.
The definitions of TPD can vary between insures and there are generally two types of TPD options available: “own” occupation or “any” occupation. It is crucial that you seek professional advice on the right terms of cover for your situation to ensure you are not wasting money paying for an inappropriate level of cover.
TPD insurance can usually be taken as either an addition to a life insurance policy or as a stand- alone policy (within our outside Superannuation) and there are varying levels of tax deductibility to be taken into account. Again, selecting the right option is crucial as it will have a big impact on your financial future if you ever meet the medical definition of TPD.
When assessing your need for TPD cover, we look at factors such as your current level of debt, the importance of your income to support ongoing living expenses for your family and any future expenses you anticipate, such as funeral costs, children’s education expenses or medical bills.