TPD Insurance Explained – And What It Covers.

There are times in one’s life when an unfortunate incident occurs, resulting in a permanent disability that can make the individual unable to work. Total & permanent disability insurance covers individuals in such a situation. It helps them get by and stay calm with expenses relating to medical and living costs. This post will explain in detail what TPD insurance is all about, what it covers, and what it means for you.


What is Total & permanent disability?

Total & permanent disability (TPD) is there to support you if you become permanently disabled as a result of illness or injury. It pays a lump sum if you cannot work due to the total or permanent disability. You can use the payout to sort medical and rehabilitation expenses, make a loan repayment, and make changes at home to suit the disability.

Inurance Tpd
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Benefits of TPD

TPD insurance saves you and your family from financial stress in a situation of total and permanent disability, which makes you unable to work again. The insurance will offer a lump sum payment which you and your family can use to continue meeting living expenses, repay debt, and settle costs relating to treatment, house alteration, and ongoing care.

What TPD insurance covers

Insurers have different meanings attached to TPD cover. Your condition must render you incapacitated to a point where you can never work again to be eligible for TPD insurance. So, if there is the possibility of you recovering and going back to work, there will be no payout. Also, 59 is the age limit to apply for cover, and this cover will continue until the policy anniversary (65th birthday).

TPD offers you a helping hand when you need it the most. It financially supports you and your family in a situation where illness and injury lead to total disability, making you incapable of working as you used to. The policy can cover you for any of the following:

  • Own occupation: This coverage is more costly and primarily exists outside the super. It’s when you cannot do the job you used to before your disability, 
  • Any occupation: When you cannot do the job appropriate to your training, education, or experience, this cover is less expensive but has a higher point to claim, so it may not pay out.

 What TPD does not cover

Suppose TPD Insurance is not connected to Life Insurance; payout will not be made under TPD except if the individual covered by life insurance survives the condition for at least 14 days. Just like other insurance policies, there are exclusions to this cover, including minor conditions not considered for claim, illness, or injury caused by an intentional act or self-harm, if TPD is linked or associated with life insurance, if you qualify for life insurance benefits for terminal illness, etc. It’s essential to read the relevant PDS to learn more about what is and isn’t included in the TPD policy. You can also contact your insurer if you have other questions regarding your insurance policy.

 How Total & permanent disability works

 TPD policy pays a benefit if the insured cannot work again in their job or any job suitable for their education, training, or experience. Terms and conditions and Premiums will differ depending on the policy definition in the product disclosure statement. So, talking to your financial adviser before resolving any policy is advisable.


Anyone can apply for TPD insurance, but certain factors will determine your qualifications for coverage. Make sure to understand the policy properly before making a decision. Becoming disabled due to illness or injury is not the end of the world; TPD will afford you the financial support you need in this condition.



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