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Total and Permanent Disability Insurance: Business vs Personal

Total and permanent disability insurance is designed to help protect individuals and businesses from the severe consequences of a permanent disability that makes someone unable to ever return to work. While most people are aware of its personal use and coverage, many are unaware that TPD can also be used to protect their business in the case of a permanent disablement to a key member of the staff.

Total and Permanent Disability Insurance

Covering Your Business

Total and permanent disability insurance can be used by business owners to cover their losses or expenses if an important team member becomes totally disabled and is unlikely to ever work again. The consequences of a permanent disability to a key person can include the loss of income and productivity. It can also cost a lot to replace them and train that replacement.

Coverage levels can be difficult to work out because there are so many factors involved. Skill level, training time, loss of productivity and loss of market leverage are all important considerations. Your insurance provider has access to formulas that are accepted across the industry to help you determine what coverage is appropriate.

Covering Yourself

TPD insurance for the individual can help cover personal losses if you become totally disabled and are unlikely to ever work again. It can be used to help you with current expenses, recurring expenses and one-off expenses. Current expenses are those that are present at the time you are injured, including costs of living such as loan repayments, monthly bills and food.

New expenses are those which are a result of your disability. These include your initial medical costs, rehabilitation and modifications to your home or car to accommodate your disability.

Call Approved Financial Planners Today

At Approved Financial Planners, we have been providing financial planning help and disability insurance protection to the Perth area since 2005. We have more than 80 years’ combined experience in providing financial planning and wealth protection for our clients. After an individual consult, we can help you determine what kinds of cover you need.

To learn more or for an individual consult, call us today: 08 6462 0888.