Total & Permanent Disablement (TPD) Insurance

Have you ever thought of what would happen if you were unable to return to work due to a sickness or an injury? Would you have enough savings put aside to ensure minimal disruption to you and your family’s lifestyle as you all adjust to your new way of life? Total and Permanent Disability (TPD) insurance can provide you with financial peace of mind.

Who should have this cover?

Anyone who does not have a significant amount of extra money close to hand that could be used if a sickness or injury occurs and they were unable to return to work.

For example, people:

  • with families or financial dependants
  • with mortgages or other significant financial liabilities
  • not wanting to burden others financially
  • with their own businesses

Why is it important?

If you choose to have TPD added to your Term Life policy, this will provide a lump sum benefit to the insured in the event of a Total & Permanent Disability. The insurance proceeds can be used to clear any debts and/or make alterations with your life moving forward. This ensures that you are not forced to sell your home or other assets at ‘fire sale’ prices if the bank calls in the loan.

How does it work?

Most companies will pay in the event of the life insured is unable to return to work. Depending on which definition you choose, this means that the life insured either will be unable to work in their own occupation, or any occupation for which they are suited by training, education or experience, or Loss of Limbs or Sight, Unable to Work or Unable to Perform Daily Living Activities. Generally you must be considered ‘never to be able to work again’ and this is permanent in nature. This is NOT the same as Income Protection. Your Experien financial adviser will be able to assist you with which definition would be best suited to your situation. There are specific circumstances for this payment and it is paid as a one off lump sum. Always read the appropriate Product Disclosure Statement for exact definitions.

Please speak with an Experien Insurance Adviser for further information.