Total and Permanent Disability Insurance
Total and Permanent Disablement (TPD) cover pays a lump sum should you become totally and permanently disabled through illness or injury. TPD can create an adverse financial burden, preventing you from earning an income at a time when you may have ongoing and other expenses eg. Medical and/or rehabilitation.
Your family also suffers from your disablement both financially and emotionally. By helping to ease financial concerns, TPD benefits go some way towards softening the effects on you and your family.
To be classified as TPD two things must occur:
- the life insured must suffer an injury or sickness; and
- The injury or sickness must result in total and permanent disablement.
It is important to note here that there are different definitions of TPD for different insurers. Most importantly, it relates to the definition of what work you are not able to perform. You have to carefully examine the definitions of TPD in the policy. However, you need to be aware that some definitions are as follows:
- Totally disabled from undertaking any occupation for which the insured is suited by reason of training, education or experience.
- Totally disabled from undertaking your usual occupation.