TPD Insurance

What is Total & Permanent Disability (TPD) insurance?

TPD insurance is cover that will pay a lump sum benefit to the life insured if they are unable to ever work again due to illness or injury.  There are several types of definitions that apply that can be taken out to insure against different situations, e.g. insurance that covers not being able to work in your own occupation, insurance that covers being unable to work in any occupation, insurance that covers being unable to perform your regular home duties.

Why do you need TPD insurance?

TPD insurance is needed as it is designed to replace lost income that would have been earned by the life insured.  TPD benefits will provide the life insured and any dependants with financial assistance to help meet their regular expenses and assist with any modifications needed post disability.  TPD insurance is needed by anyone who is responsible for looking after their home or family.  As with income protection you need to financially protect your long term earning capacity that would be lost through a permanent disability.