What Does TPD Stand For?
Total and Permanent Disability (TPD) Insurance is a type of insurance that pays out a lump sum if you are unable to work due to an accident or illness. TPD cover can provide you with a lump sum payment if you are unable to ever return to work due to an accident or illness. This payment can be used to help cover the cost of medical expenses, make mortgage or rent payments, pay off debts and support your family.
Own Occupation Total Permanent Disability Insurance
With Own Occupation TPD cover, you will be paid a benefit if you are unable to ever work again in your own occupation. Your Own Occupation generally refers to the role you are in at the time of disablement. This is the most comprehensive type of TPD cover available.
Any Occupation Total Permanent Disability Insurance
With Any Occupation TPD cover, you will typically be be paid a benefit if you are unable to ever work again in any occupation you are suited to by way of education, training or experience. This is the most common type of TPD cover available.
Activities of Daily Living Total Permanent Disability Insurance
With Activities of Daily Living TPD cover, you will be paid a benefit if you are unable to ever work again and are also unable to perform two or more of the activities of daily living. This is the least common type of TPD cover available.
How Has The TPD Insurance Definition Changed Over Time?
The definition of TPD has changed over time, with some insurers now offering cover for partial and temporary disabilities as well as total and permanent disabilities.
What Are The Eligibility Criteria For TPD Insurance?
To be eligible for TPD Insurance, you will usually need to be:
– A Australian resident
– Working at least 20 hours per week
– Under the age of 65
How Much Does TPD Insurance Cost?
The cost of TPD insurance varies depending on a number of factors such as your age, occupation, lifestyle and the level of cover you require. Generally, the younger you are, the lower the cost of cover will be.
What Does TPD Insurance Cover?
TPD Insurance can cover you for things like:
– The cost of modifying your home or car
– The cost of retraining for a new career
– The cost of ongoing medical and rehabilitation expenses
Issues With The TPD Definition
One of the main issues with the TPD definition is that it can be difficult to prove that you are totally and permanently disabled. This is often because there is no clear definition of what constitutes a total and permanent disability.
As a result, many people who are legitimately disabled may not understand what is required to claim on their TPD cover.
If you are considering taking out TPD Insurance, it is important to make sure that you understand the definition of TPD and the eligibility criteria. You should also consider whether you need Own Occupation or Any Occupation cover.
Where You Can Claim TPD Insurance Payouts?
TPD Insurance claims can be paid out through a number of different channels, including:
– Your superannuation fund
– Your life insurance policy
– A standalone TPD policy
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.