What TPD Insurance Covers

TPD cover, which is formally called Total and Permanent Disablement insurance, pays out a lump sum payment to the life insured if you’re permanently unable to work and you meet the relevant requirements.

The definition to be able to claim on this insurance is that you are totally and permanently disabled and you are expected to never return to work again.

There are different definitions for TPD cover which are important to consider when choosing your TPD insurance cover:

Any Occupation

This definition any occupation for TPD cover is the most popular definition and effectively will cost you the least. It means that you have to be totally and permanently disabled to work in any occupation for a consecutive six month period and expected to never to return to work again.

For example, you may be a builder and loose a limb such as your leg therefore unable to work within your occupation as a builder anymore. If this was the case, a claim would not be paid to the life insured if they had an any occupation definition as they could still work in a telecommunications service or within an office in front of a desk.

Own Occupation

This definition own occupation is ideally the definition which most clients we speak to at Lifebroker want to take out when choosing their TPD cover insurance plan. It is specific to your own occupation and means that you would be able to claim on the insurance if you were totally and permanently unable to work your own occupation for a consecutive six month period and expected to never return to work again.

Activities of Daily Living

The definition of activities of daily living refers to things such as feeding yourself, bathing yourself, dressing yourself and looking after yourself. If are unable to do two of these things in a situation where you are totally and permanently disabled, you would be able to claim on the insurance.

TPD cover at a glance

The premiums for TPD cover are based on age, gender, occupation as well as smoking status.

• It covers you in the event you cannot work and expected to never return to work again
• You receive a lump sum payment from the insurance company
• You will not receive the benefit if you are partially disabled, you have to be totally and permanently disabled
• You can combine life insurance with TPD cover
• It is a financial consequence of a disablement

It will help you financially in the worst of times when you feel like giving up.