TPD Insurance

By: Elders Financial Planning - Perth   24-Mar-2011
Keywords: Insurance

Total and Permanent Disability insurance (TPD) provides a lump sum if you suffer an illness

or injury that leaves you

totally and permanently disabled.

TPD insurance benefits are often used to eliminate debts, pay for medical expenses or fund any permanent changes to your lifestyle that are necessary as a result of your disablement.

TPD products vary in their definitions of what ‘totally and permanently disabled’ means. It is im

portant to do your research and be sure you have a product that allows you to claim under one of the following four definitions.

1. Unlikely to ever work in your 'own' or 'any' occupation again.

2. Permanently unable to perform two of the Activities of Daily Living without the physical

assistance of someone else:

bathing and showering, dressing and undressing, eating and drinking, maintaining continence

getting in and out of bed (or a chair or wheelchair).

3. Loss of use of limbs or sight.

4. Suffer significant cognitive impairment (dementia type illnesses).

What is the difference between an 'own' or 'any' occupation definition?

Most companies will allow you to choose whether you would like coverage against being unlikely to be able to work in your 'own' occupation or in 'any' other occupation again, after suffering an illness or injury.

For example, a surgeon who injures her hands in a motor vehicle accident may not be eligible for benefits under an 'any' occupation definition, as she is still qualified (and able) to work as a general practitioner.

However, if the surgeon has an 'own' occupation policy, she may be eligible to claim, as she is unlikely to ever work as a surgeon again.

'Own' occupation TPD provides a greater level of coverage. Your financial adviser will be able to talk to you about the best definition for your personal circumstances.

Keywords: Insurance

Other products and services from Elders Financial Planning - Perth


Life Insurance

We make sure that when bad things happen to good people as they unfortunately do, that their income , livelihood and family are not protected ansd their lifestyle is maintained. We also help people build their wealth and give them choices about their future.


Trauma Insurance

Trauma insurance – or Recovery insurance – provides you with a lump sum on the diagnosis (or occurrence) of one