Total and Permanent Disability Insurance - TPD Insurance
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What is TPD Insurance?
TPD Insurance provides a lump sum payment if you’re Totally and Permanently Disabled. Depending on your policy, you are covered if you can’t work again (see occupation definition in tips below).
TPD Insurance can be used to help cover rehabilitation costs, repayment of debts and the cost of living for you and your dependants. Payments are not usually made until the disability has been evident for six months, and the insurer deems that you are unlikely to work again based on the definition in your particular policy. It can specifically:
- Pay for lifestyle changes, and
- Pay off debts.
What options are there with TPD Insurance?
- Any Occupation definition: you are able to make a TPD claim if you are permanently disabled and unable to perform any occupation that you are suited to by education, training or experience.
- Own Occupation: you can claim if you are unable to work in your usual occupation of chosen field of employment
Does TPD Insurance differ across different insurers?
Generally TPD policies are very similar across different insurance companies. However make sure you read the insurer’s product disclosure document (PDS) carefully to see what conditions are included and excluded.
How much does TPD Insurance cost?
TPD Insurance cover has relatively low premiums when compares to other types of insurance, TPD premiums will vary according to:
- You age (premiums may increase or cover decrease as you get older)
- Your gender (males attract higher TPD premiums due to higher risks)
- Whether or not you smoke, and
- Occupation (for example, a manual labourer pays higher premiums to an office worker due to higher risk)
TPD Insurance premiums are not tax deductible; however, the benefit payment is tax-free if paid to the injured person (non-superannuation).
Often referred to as Total & Permanent Disablement Insurance, or TPD Insurance.