What is TPD Insurance?
TPD or Total and Permanent Disability Insurance is put in place to pay a nominated amount to you in the event that you become totally and permanently disabled. This is actually more common than people realize and some disbursements are small but still warrant claim or payout. If you are declared disabled and unable to work you will be paid a nominated amount. There are different definitions you can apply for but not all are available with each insurer.
What are the different TPD Definitions?
Own Occupation - Paid when you are unable to complete your own occupation due to disablement.
Any Occupation - Paid when you are unable to complete your any occupation for which you are suited based on training or experience due to disablement.
Home Duties - Paid when you are unable to complete home duties due to disablement.
Non Working - Paid when you have loss of independent existence, suffer loss of limbs or sight* or suffer a cognitive loss.
Some additional conditions are likely to apply to these definitions and they are in no way an immediate indication of what to expect however are generally the same for most insurers.
How much is TPD Insurance?
The cost of TPD Insurance varies depending on your nominated amount and if you have any existing medical issues. Generally the younger you are the cheaper your TPD insurance premium is. When linked with a Life Insurance policy generally the price represents more value.
How do I pay for TPD Insurance?
Paying for Life Insurance is easy and there are multiple options dependent on your circumstances. This can be paid in cash on a monthly or annually basis. You can also pay via superannuation for some definitions.
How much TPD Insurance do I need?
As a rule of thumb there is no set amount. Generally however most people with TPD Insurance will have a benefit amount sufficient to pay off any existing debts, provide financial aid for yourself, a spouse or immediate family. You may wish to consider the cost of making your home is accessible for a wheelchair or assisted living. Some people even ensure their children have sufficient funds to pay for the cost of education or housing. It is best to consult an expert to fully explore your options.
When should I get TPD Insurance?
If it’s based on value, generally the cost of TPD Insurance is cheaper the earlier you purchase it. There are different premium types such as stepped and level which should be taken into account when making a long term decision. There are also the different definitions to consider.
Can I get TPD Insurance?
Generally most people are eligible for TPD Insurance however this is at the discretion of the insurer. Depending on your occupation only certain definitions may be available for you. It is ideal to speak to a consultant or insurance professional at WE Insurance to find out.