Total & Permanent Disability Insurance

What is TPD Insurance?

TPD Insurance will provide financial support to you and your family in the event that, due to sickness or injury, you become totally and permanently disabled. There are 3 different definitions for total and permanent disability, they are outlined in the feature summary below.

Why take out TPD Insurance?

In the unfortunate event that you become totally and permanently disabled, TPD Insurance aims to ease the financial pressures of no longer being able to work, can allow for funding the services of a carer if required and make any necessary adjustments to your lifestyle.

Feature

Description

Age restrictions

 

The maximum entry age for TPD Insurance varies slightly between insurers, typically ranging between 59 and 62 years of age.

 

Policy expiry

Typically, cover expires at age 99. However, the TPD definition will change to “non-working” at age 65 or 70 depending on the insurer.

 

Amount of cover

The minimum amount that can be applied for is $50,000.

 

The maximum amount that can be applied for is $15,000,000.

TPD definitions

 

(the wording may slightly differ between insurers)

Any occupation” – Due to sickness or injury, it is unlikely that you will ever again be able to work in any occupation that you are reasonably suited to by education, training or experience.

 

Own occupation” – Due to sickness or injury you have not been working in your current occupation (usually for three consecutive months) and it is unlikely that you will ever again be able to work in your own occupation.

 

Home duties” – Due to sickness or injury you have been unable to perform home duties (usually for three consecutive months) and are unlikely to ever again be able to perform home duties.

 

Non-working” – Due to sickness or injury you have suffered one or more of the following:

·         Loss of limbs or sight

·         Loss of independent existence

·         Cognitive loss

 

Ownership structures

Self owned

 

Superannuation owned (only available for “any occupation” TPD)

 

Self Managed Superannuation Fund owned (only available for “any occupation” TPD)

 

Superannuation optimiser – has an own occupation definition under a “split” policy whereby approximately 2/3 of the premium is paid by your super fund and approximately 1/3 of the premium is paid by you personally.

 

Who receives the benefit?

In the event a claim is made, the lump sum benefit will be paid to the policy owner.

Common built in benefits

Death benefit – If the life insured dies and no TPD benefit has ever been paid under this policy, a lump sum payment of a specified amount will be paid accordingly.  

 

Common additional benefits available at an extra cost

Indexation benefit – Your sum insured will increase each year at the rate of CPI.

 

Life cover buyback – This benefit applies only if your TPD cover is linked to Life cover, enabling you to reinstate your Life Cover for the amount of a TPD benefit paid without being subject to further medical underwriting.

 

Making a claim

In the unfortunate event that a claim is made on your TPD policy, you must notify us and we will handle the entire process and assist in making this simple and efficient for you.

 

 

General Advice Disclaimer

General advice warning: The advice provided is general advice only and in preparing it we did not take into account your investment objectives, financial situation or particular needs. Before making an investment decision on the basis of this advice, you should consider how appropriate the advice is to your particular investment needs, and objectives. You should also consider the relevant Product Disclosure Statement before making any decision relating to a financial product.