Total and permanent disablement insurance, or TPD, is a form of disability insurance that pays you a lump sum payment in the case that you are never able to work again due to disability. TPD can help ensure that your needs and your family’s are covered if you become permanently unable to work. (1)
Sadly, a disability can happen to anyone, young or old. A person can suffer a debilitating injury by playing sports, driving or even walking down the street. A head trauma or severe illness can have life-changing consequences. These are all risks that we face every day of our lives, even if they aren’t in our consciousness.
How TPD can Help You
If you sustain an injury or illness that makes you unable to work, TPD can help you provide for your family. It is usually purchased in tandem with life insurance to provide a “financial safety net” for you and your family in the event that you are no longer able to work. (2)
TPD is usually purchased in one of two formats. It either protects you if you can no longer work in your own occupation or if you can no longer work in any occupation. It can help you cover the costs of debt repayments, rehabilitation and your costs of living in the future. (2)
Each insurer has a different set of definitions that determine whether you are deemed “totally and permanently disabled.” For example, an injury that requires you to take a year away from work does not qualify as being “permanently disabled.” It is important to know exactly what is on your coverage. (2)
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To learn more or to enquire about total and permanent disability insurance, call us today: 08 6462 0888.
AMP, “Total and Permanent Disablement: Protect your future and the future of your loved ones.” https://www.amp.com.au/personal/insurance/products/insurance/total-permanent-disablement#our-tpd-products
Australian Securities and Investments Commission, MoneySmart, “Total & Permanent Disability Cover.” https://www.moneysmart.gov.au/insurance/life-insurance/total-and-permanent-disability-cover