What is Total Permanent Disability (TPD) insurance?

TPD cover pays a lump sum in the event you become totally and permanently disabled and you cannot return to work. The money can be a financial lifesaver and can be used to :

Repay your mortgage

Meet ongoing medical expenses

Pay for modifications to home (where necessary)

Fund ongoing lifestyle expenses

TPD definitions

There are three different types of definition when come to TPD cover in Australia.

• Any Occupation-

  The ‘Any’ occupation is often included as part of your superannuation fund, but this is a very strict definition. Most policies will only pay a claim if “you are considered (by two medical professionals) to never be able to work again in any occupation for which you are reasonably qualified for by training education or experience”.

• Own Occupation-

  The ‘Own’ occupation definition is better (and slightly more expensive) because you are considered to be totally disabled when “you are considered (by two medical professionals) to never be able to work again in your own occupation for which you are reasonably qualified for by training education or experience”. This is a much better definition because you are still eligible for payment even if you can be retrained to work in a very different role (such as answering phones etc)

• Home-maker Occupation-

  The ‘Home-maker’ definition is only applicable for those who are home-makers performing normal domestic duties. A claim is paid if the insured has suffered an illness or injury that prevents them from carrying out normal domestic duties, leave home unaided and requires ongoing medical care.