TPD Insurance

From your Australian Life Insurance Brokers

What is TPD Insurance? TPD Insurance Definition

Wikipedia TPD Insurance definition: Total Permanent Disability (TPD) is a phrase used in the insurance industry and in law. Generally speaking, it means that because of a sickness or injury, a person is unable to work in their own or any occupation for which they are suited by training, education, or experience. An individual or group of individuals can obtain tpd cover through a TPD insurance policy, as part of a life insurance package or through worker's compensation insurance.

A permanent disability is one that will remain with a person throughout their lifetime, or they will not recover, or that in all possibility, will continue indefinitely. Insurance companies often have slightly different definitions of what determines total & permanent disability. However typical definitions would include:

• Loss of two of eyes, arms or legs.
• Absence from work for six months or more due to an accident or illness, without the expectation of returning to work.

TPD Insurance or TPD Cover is variously called TPD Insurance, Totally and Permanently Disabled Insurance and/or Total and Permanent Disability Insurance.

Total and Permanent Disability Insurance - TPD Insurance

Another TPD definition ... disability income insurance provides coverage in the case you are TOTALLY and PERMANENTLY disabled. It is a lump sum payment upon medical determination that you can never work again because of your disabilities. This is whether the disability is caused by illness or accident. Note that the disability has to be deemed to be 'TOTAL' AND 'PERMANENT'.

TPD Insurance, Disability Income Insurance or TPD Cover is used to clear out debts, provide funds for medical costs and annual income streams to ensure you maintain the same quality of lifestyle. It is generally paid when you have been advised by a medical specialist that you will never work again.

Total and permanent disability insurance or TPD Cover is available as a stand-alone product or as an optional addition to your Life Insurance or Trauma Insurance Plan, to cover you in the event of a permanently disabling accident. TPD Cover provides a lump-sum benefit up to a maximum of $5 million is paid to the insured party in the event of them becoming totally and permanently disabled. This payment will assist with meeting any financial shortfalls and help to adjust to new circumstances that may arise from the disability.

If you are unsure about the right amount of cover, advice from a professional is recommended. It is also recommended that the lump sum insured be reviewed regularly, especially with changing circumstances that may effect whether the TPD insurance sum insured continues to be sufficient for your needs.

Types of TPD Insurance

In Australia there are four types of total and permanent disability insurance available. These include:

• Any occupation – this is where the insured is unlikely to work for the rest of their life, in their profession, business or similar occupation for which they have education, training and experience.
• Own occupation – this is where the insured is unlikely to ever work for the rest of their life, in their own occupation.
• Home duties – where the insured is unable to engage in any normal domestic duties for a continuous period of at least three months. This type of TPD insurance generally goes through more processing where medical evidence is more closely considered to identify the level of incapacity.
• Modified – where the insured is permanently and totally unable to perform without physical help from someone else or suffers cognitive impairment requiring constant supervision and has been disabled for 3 preceding months and will continue to be disabled for the rest of their life.

Total and Permanent Disability Insurance as compared to Income Protection Insurance

The main difference between TPD Insurance and income protection insurance is that TPD pays out a lump sum benefit, whereas income protection provides an income on the basis of a person being unable to do their job for longer than the specified waiting period in the policy and until they can go back to work or until the end of their benefit period. For this reason, TPD should be an additional policy (to be included with Life Insurance or Trauma Insurance) rather than a replacement for income protection insurance.

Taxation of TPD insurance

You can pay premiums for tpd in super. When held outside of super, total and permanent disability insurance premiums paid are generally not tax deductible, however the lump sum benefit paid when you make a TPD insurance claim, is generally paid tax free.

TPD Insurance Quote

To request a TPD insurance quote, or for inquiries regarding life and tpd insurance or death and tpd insurance, submit an online TPD Insurance quote request form by going to the tpd insurance quote request page.

Further Inquiries

As Insurance Brokers, we welcome inquiries on our Life Insurance, Trauma Insurance, TPD Insurance & Income Protection Insurance products and insurance broker services. We can help you compare life insurance policies, compare income protection insurance policies, compare trauma insurance or compare tpd insurance policies from various sources and ensure you get the most appropriate policy for your particular circumstances.

Please feel free to send us an email, call us on 1300 766 467, use our contact us page to send us an online inquiry or submit a life insurance quote, income protection insurance quote, trauma insurance quote or tpd insurance quote form. We will contact you within 24 hours to answer your inquiry.

DISCLAIMER

This web site does not provide financial or investment advice. The information herein is general material and does not take into account your personal and particular insurance, personal, or investment data or objectives or relevant needs. If we can assist with specific advice please contact us.