Total and Permanent Disability

Total & Permanent Disability (TPD) contracts provide a lump sum payment should you become totally and permanently incapacitated through illness or injury.

The most important requirement is for you to have your income fully covered by Income Protection. However, we do not believe that this alone would be sufficient to offset the financial impact of you becoming totally and permanently disabled.

A lump sum is required to:

• Pay for significant costs such as medical expenses and rehabilitation costs.

• Pay for modifications to the home or car to accommodate for your condition.

• Replace the 25% of your income that is not covered by your income protection policy

• Replace the superannuation lump sum that would normally accrue over your working life

Total and Permanent Disability contracts are offered as “Own” occupation or “Any” occupation. “Own” occupation TPD is the preferred definition as the criteria to meet is based on you not being able to perform your own occupation. It provides you with the highest opportunity to make a successful insurance claim. This is reflected in the higher premiums that accompany this form of cover. “Own” occupation TPD cover is only available to certain occupation categories.

The alternative is “Any” occupation TPD which provides you with a lump sum benefit where you are unable to work for health reasons and medical evidence indicated it is unlikely that you will ever work again (in “any” occupation) or you suffer a specific loss or are unable to perform certain duties of daily living. “Any” occupation TPD can be owned under superannuation allowing premiums to be funded by pre-tax contributions.

As with Life Insurance, consideration needs to be given to superannuation ownership v non superannuation ownership.