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 your 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.
Contact us to get a quote and policy comparison here.
Who should have Total & Permanent Disablement (TPD) Insurance cover?
Anyone who does not have a significant amount of extra money readily available to be used if sick or injured and unable to return to work such as those:
- with families or financial dependents
- with mortgages or other significant financial liabilities
- who don’t wish to burden others financially
- with their own businesses
Why is Total & Permanent Disablement (TPD) Insurance important?
If you choose to have TPD added to your Term Life policy, a lump sum benefit will be paid 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 Total & Permanent Disablement (TPD) Insurance work?
Most companies will pay if 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.
Read more articles here on TPD insurance
Client testimonials about TPD insurance
- This first testimonial details the experience of a dental professional who suffered a serious hand injury, rendering them unable to continue practicing dentistry. The story highlights how Experien Insurance Services assisted in successfully lodging a Total and Permanent Disability (TPD) insurance claim. The process involved gathering medical evidence, navigating insurer requirements, and ultimately securing a payout that supported the dentist’s financial future after their career was cut short. Read the full TPD testimonial here
- The second testimonial involves a dentist who received a TPD insurance payout exceeding $1 million, along with ongoing monthly income protection benefits. The testimonial emphasizes the importance of having comprehensive insurance coverage and how Experien played a key role in managing both claims. It showcases the financial relief and stability provided through proper insurance planning and expert claim support. Read the full testimonial here
- This third testimonial focuses on the proactive side of insurance—arranging appropriate Life and TPD cover. It describes how Experien Insurance Services helped a client assess their needs and secure suitable insurance policies. The story underscores the value of expert advice in ensuring individuals are adequately protected against unforeseen life events. Read the full client testimonial titled “Helping arrange Life And TPD Insurance Cover” here.
Other articles on TPD insurance
- Do Doctors Need TPD Insurance ? This article explains why doctors should consider both Life Insurance and Total and Permanent Disability (TPD) Insurance. Life insurance pays a lump sum upon death, while TPD pays if the insured becomes permanently unable to work due to illness or injury as defined by the policy documents. Doctors often receive default cover through superannuation, but this may not be adequate. The article emphasizes the importance of tailored advice from financial advisers to determine appropriate coverage levels. It also outlines key differences between life and TPD cover, including definitions of disability, exclusions, and policy structures (e.g., linked vs standalone cover). Read the full article here
- Average Total and Permanent Disability Insurance Claims Sizes. This article highlights data from APRA showing that TPD claims arranged through financial advisers are significantly larger—over four times—than those arranged via group insurance in superannuation funds. Adviser-arranged policies are tailored to individual needs and often include more comprehensive medical information, allowing insurers to offer higher cover amounts. The article encourages readers to seek personal advice to ensure adequate protection. Click here for the full article : Average Total And Permanent Disability Insurance Claims Sizes
- Underinsurance for Life Insurance, TPD Insurance and Income Protection Insurance. This article discusses findings from the Financial Services Council indicating that 1 million Australians are underinsured for death/TPD cover, and 3.4 million are underinsured for income protection. It stresses the importance of reviewing existing insurance arrangements and seeking professional advice to ensure coverage aligns with personal financial obligations and risks. Read the article here
- TPD Insurance Premiums Affected by Rising Mental Illness Claims. Mental health is now the leading cause of TPD claims in Australia, accounting for nearly one-third of all claims. The article cites data showing a 732% increase in mental health-related TPD claims among people in their 30s over the past decade. This surge has significantly impacted insurance premiums. It also notes that lump sum payouts may not provide lasting financial security for younger claimants, highlighting the need for comprehensive financial planning. Total And Permanent Disability Insurance Premiums Affected By Rising Mental Illness Claims
Please speak with an Experien Insurance Adviser for further information.
Information on our website is general in nature and does not take into account your personal circumstances. You should consider personal advice that allows for your own goals and situation and always read the Product Disclosure Statement (PDS) issued by an insurer before considering buying cover.
