Total and Permanent Disability (TPD) Cover is an insurance put in place that provides a lump sum payment, once you have been totally and permanently disabled to do the occupation you have been trained or qualified for.  In real terms you would have been off work for at least a twelve consecutive month period and unlikely to ever work again, as assessed by a medical practitioner.

Life doesn’t always turn out the way we plan.  Illness or accidents happening more often than you might think, and can leave you unable to earn a living.

The Facts

• 2.6 million Australians aged under 65 are living with a physical disability
• Australians suffer 60,000 strokes per year or roughly one stroke every ten minutes
• About 878% of stroke survivors live at home and most have a disability
• Over million Australians need assistance with core activities (such as communication, transport and self-care) due to sever disability

Now some disabilities are more severe than others, but it is the more serious issues that are the major concern, especially those rendering you unable to ever work again.  TPD cover provides that cover in the event of a major accident or illness that renders you unable to ever work again.

Common misconceptions

“I’ll receive a disability pension”……………..The disability pension only provides around 20% of the average Australian wage.

“My TPD Cover in my default super fund is enough”………………..Insurance cover inside super generally only represents 20% of the require cover.

The Basics

TPD cover provides a lump sum payment that then gives you choices as to how to best utilise those funds; whether it be for mortgage repayments or paying down debts, day-to-day living expenses, ongoing care, medical bills or home modifications…essentially protection for the way you want to live.  Sure, you could survive on savings, but for how long. Living with permanent disability would leave very few options for you and your family to enjoy the future in the way you’d like to live…TPD cover provides those options.

Choice of cover level

• Different companies will provide different policies with different inclusions, meaning cover for additional disability definitions and cover for different occupations.

Own Occupation versus Any Occupation

‘Any Occupation’ cover means you would covered by TPD Insurance if you would be unlikely to ever return the work in your own occupation or any other occupation for which you are reasonably suited for, by reason of education, training or experience.

‘Own Occupation’ cover means you would be covered by TPD Insurance is you would be unlikely to ever return to work in your current occupation.  You may also be eligible to continue to receive the benefit if you continue to work in a different occupation that is not impaired by your disability.

The Own Occupation definition is perhaps the more thorough classification, but not always required, depending on your given circumstances, so it is always worth discussing with us first to help assist in this determination.

As you can see from the above, there a number of factors that can affect the premium, the main one being the actual risk involved in your actual occupation . This is usually the starting point in working out the appropriate level of cover suitable for your needs, and then finding the best way to tailor it into your insurance package. We have over twenty years experience in helping people select the best insurance provides suitable to their needs and are always there if needed especially upon claim time, as this is often when you want all the help you can get.

‘Looking out for you’.