Sometimes, people are unable to return to full time work ever again. Situations like this are called Total and Permanent Disability, or TPD. When the financial superhero of the family has to hang up his or her cape for good, TPD insurance can swoop in and provide financial security. This kind of insurance offers great peace of mind and great benefits if it is ever needed.
TPD is a policy that Pays a lump sum amount if you become disabled and are unable to ever work again. You can use this lump sum to pay off debts, cover medical costs and invest so that you have an annual income to help maintain your lifestyle. Why should you or your family members have to lower their lifestyle when unforeseen circumstances hit? With TPD insurance, you won’t need to!
Types of TPD Insurance
Currently in Australia there are 3 main types of Total and Permanent Disability Insurance available. These include:
- Own occupation – this is where you are unlikely to ever work in your own occupation again for the rest of your life. This definition will give you greater flexibility at claim time, but is generally more expensive and only available to certain occupations.
- Any occupation – this is where you are unlikely to work in your usual profession, business or similar occupation to which you are suited by education, training and experience for the rest of your life.
- Home duties – where you are unable to engage in any normal domestic duties for a continuous period of at least three months. This type of Total and Permanent Disability insurance generally goes through more processing where medical evidence is more closely considered to identify the level of helplessness.
Total and Permanent Disability, or TPD, can be a very frustrating situation for anyone involved. When you can no longer provide financially for your loved ones in the way you did before, a TPD insurances plan can be a great resource. At Superhero Insurance, we pride ourselves on connecting you with the best policies available on the market today. This lump sum TPD payment may then be used however you wish including:
- Paying off a home loan.
- Repay other creditors
- Make alterations to your car or home to cater to your impairment
- Pay for insurance expenses
- Provide ongoing financial support for your family and replacing your lost income
You can take out TPD insurance as standalone cover or decide to bundle it together with your life insurance plan.
How is Total and Permanent Disability Insurance Different to Income Protection?
This form of insurance is similar to Income Protection Insurance in that you will be financially taken care of if you are unable to work due to an illness or injury. However, there are a number of differences between the two types of insurance, which are:
- Total and Permanent Disability insurance is designed to provide protective cover in the event of a long term/permanent disability
- Income Protection Insurance provides coverage for both short and long term disabilities
- This type of insurance benefit comes in the form of lump sum payment
- Income Protection Insurance provides an ongoing monthly benefit to serve as a replacement income for a specified benefit period
Total and Permanent Disability Insurance can be considered as an additional coverage you can include in your existing insurance portfolio. As Income Protection only replaces 75% of your monthly income, many people use this type of cover as a means of recovering the additional 25% of lost income for long term disabilities. By combining both types of cover you are able to receive a lump sum payment to eliminate loan repayments, leaving your Income Protection benefit to finance your standard of living.
This form of insurance makes it easier to handle a bad situation. Not everyone can return to work just like before after an encounter with the villain of illness or injury. Luckily, a policy from Superhero Insurance and our partners can provide you with an extra helping hand in your time of need. When you are covered an insured by the best carriers in all of Australia, your disability situation can be much easier to handle.
Don’t wait for disaster to strike and the evildoers to take the upper hand. With superhero protection on your side, you can rest easy knowing that you are covered in the worst of situations. Use our quote tool to find the best policy for you.