Get Covered with TPD Insurance
There are 50,000 heart attacks in Australia annually. These people could be out of the workforce permanently and may face difficult financial problems over and above the immediate costs of healthcare.
TPD insurance provides a lump sum payment if you are totally and permanently disabled before retirement age and are unlikely to be able to ever work again.
TPD insurance pays the nominated benefit as a lump sum which can be used for the same purposes as life insurance or could also help to:
Pay one-off capital expenses such as;
- home and car modifications
- a new or more suitable home or car
- debt reduction and one off medical and rehabilitation expenses
- create a revenue stream to meet ongoing revenue expenses, associated with being severely disabled and unable to work
Type of TPD Insurance
If the person to be insured is gainfully employed for a minimum of 20 hours per week at the time of application, then they can apply for TPD insurance. In most cases your insurer will distinguish between your “own occupation” and “any occupation” definitions and you can choose the cover that suits you best.
You receive a benefit under the “own occupation” definition if, after becoming disabled, you are unlikely to work again in your current occupation. You receive a benefit under the “any occupation” definition if you are unable to work again in any occupation your education, training and experience suit you for. “Own Occupation” is only available to certain professions.
TPD cover is also often highly valuable for a partner who does not go to work. The work they do in the home can be crucial to the family balance sheet and many TPD insurances offer domestic cover as well.
How much cover do I need?
With TPD cover, you apply for a specified amount of insurance that is known as the TPD cover sum insured. The sum insured that you choose could be based on a range of factors – debt levels, existing assets, your household budget etc.
What questions should I ask when considering this cover?
- How and when can you increase existing TPD insurance?
- What is the minimum insurance?
- How and when are TPD insurance benefits paid?
- Can the TPD insurance lump sum benefit be reduced for any reason? If so what reasons?
- When does cover start?
- When does cover end?
Personal Insurance Cover
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