TPD Insurance Policy Options

What is TPD insurance?

TPD or Total and Permanent Disablement insurance pays a lump sum benefit in the even that you are totally and permanently disabled and meet the insurance company’s required definition.

What are some of the definitions?

Every TPD definition includes the total and irrecoverable loss of; the sight of both eyes, use of two limbs or sight of one eyes and use of one limb, as a measure of total disability, there are also the following definitions:

• Any – the insurance company pays a benefit if you are off work for a minimum of 3-6 months (depending on the insurer) and cannot return to work in any occupation that you are reasonably qualified, educated or experienced to do.
• Own - the insurance company pays a benefit if you are off work for a minimum of 3-6 months (depending on the insurer) and cannot return to your own occupation.
• Home Duties – unable to perform normal domestic duties, leave home unaided or engage in any employment.
• Activities of Daily Living – means you cannot do at least two of the following: bathe, dress, eat, toilet or move freely unaided.
• Loss of Independence – cannot perform at least of the Activities of Daily Living or have suffered a cognitive impairment (such as loss of short or long term memory; orientation as to person such as identity, place or time or; loss of deductive or abstract reasoning.

What policy options are available to be under TPD insurance?

Linked or Stand Alone - You can choose to link your TPD policy to a life insurance policy to make the premiums more competitive. A linked TPD benefit will be deducted from the amount of life insurance you have, in the event a claim is paid.

A 'Stand Alone' policy means your TPD is independent of any other insurances you have, when a claim is paid your life cover will remain unaffected.

Life Cover Buy-Back - if you choose a linked policy, you can include an additional benefit for just a few dollars per month, that will reinstate you life insurance in full after a TPD claim after 12 months has passed. Your premium will be reduced to include the life cover portion only.

Double TPD - Similar to the buy-back option, except that you do not pay a monthly premium for the amount of life cover that has been reinstated under this benefit.

Partial Benefits - A partial benefit will be paid if you suffer the permanent loss of use of one arm, or one leg or the permanent loss of sight in one eye.

Premium Freeze Option - At each policy anniversary you can choose to pay the same premium you paid last year, the sum insured will decrease accordingly.

There are many policy options with TPD insurance, so make sure that you have included anything you feel is necessary to have on your policy.

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