- DHD Financial Services
- Phone +61 425 175 682
- info@dhdfs.com.au
Total and Permanent Disability (TPD) Insurance
Total and Permanent Disability (TPD) Insurance provides you with a lump sum payment in the event you become totally and permanently disabled.
The key purpose of this insurance is to help pay for medical expenses and potential renovation costs due to the changes in your lifestyle. It can also be used for lump sum funding to generate income for ongoing living expenses.
The definition of TPD can vary and is defined in each policy document. Furthermore, some policies allow you obtain TPD as a standalone policy or as
a rider policy to a Life insurance policy. The rider benefit is normally provided as an advanced payment of a death benefit.
There are few ways of structuring a TPD policy, depending on the definition.
- Any Occupation
Under any occupation policy, payment will be considered only after you have been off work for at least three consecutive months and, due to illness or injury, you are incapacitated to the extent that you will never return to work in any occupation for which you are suited to by education, training or experience.
If fund your TPD premiums through superannuation this definition can be quite cost effective.
- Own Occupation
Under an own occupation policy, payment will be considered only after you have been off work at least three consecutive months and, due to illness or injury, you are incapacitated to the extent that you are unable to work again in your own occupation.
Own occupation definition ensures that you have the maximum protection in the event of total and permanent disability. However, this policy has to be owned outside superannuation to get the maximum benefit.
For example, if you ever to make a claim under own occupation category, and the policy is owned outside superannuation, claim proceeds will come directly to you without meeting a condition of release.
