Author Box
Articles Categories
All Categories
Articles Resources

What Is Total and Permanent Disablement (TPD) Insurance?

January 17, 2012 | Comments: 0 | Views: 234

Thinking about insuring? Unsure what solutions are available to protect your wealth and your family? There are 4 main personal life insurance products available to people to protect against different risks. This article will cover TPD Insurance.

Total and Permanent Disablement Cover (TPD)

Total and Permanent Disablement Cover (known as TPD Cover) works in a similar fashion to life insurance whereas a lump sum is payable on an event that renders the person insured unable to ever work in an occupation again. The cause of the disablement can be any medical event excluding self-harm or a specific exclusion determined at application by the insurer, and basically includes any medically diagnosed illness or injury. As an example, the majority of claims result from cancers and skeletal injuries [1].

TPD Insurance is designed to cover the financial risk of losing the ability to work along with the increased costs of ongoing care. It is common to insure debts, loss of income and additional capital for possible home alterations and ongoing medical costs. It is also common for the level of TPD Cover required to be higher than that of Life Cover as under Life Insurance there is no need to cover the ongoing expenses of disablement, loss of incomes and ongoing medical care.

There are a number of forms of TPD Cover that can be obtained and each type can dramatically alter the requirements and eligibility for claim. These include;

- Non Occupational TPD Cover - this is a loss of independence style policy and the cheapest available. In order to claim the life insured needs to be unable to independently conduct 2 of 5 listed activities of daily living, for example, bathing or eating. Given the higher severity of disablement required for claim, this style of TPD cover is the cheapest option, however is the most difficult to claim.

- Any Occupation TPD Cover - Any Occupation TPD Cover requires a person to be unable to work in their occupation again or any occupation to which they are suited via education, training or experience. In assessing claims under this definition, the insurer will first assess the person's ability to do their own occupation, and then will assess if that person can do another suited occupation. If it is deemed that a person can do another occupation, then the definition will not be met.

- Own Occupation - Own Occupation TPD Cover requires a person only to be disabled from their occupation. This is the most expensive of the options, however offers the strongest definition and most claim certainty. Should the life insured be unable to work in their occupation but can work in another, this is ignored by the insurer and a claim payment is still made.

TPD entry and expiry ages are slightly more restrictive than Life Insurance. Policies under the 'own' or 'any' occupation definition will normally either expire at age 65 or will revert to the 'non-occupational' style of policy.

There are many options available to insure and the levels and types of cover needed to provide protection for you and your family will differ from person to person. The most common question I get asked is 'Is there an average or common figure that people get? There is an average, however your circumstances are not common to the next, as such it is important that your circumstances deem what is necessary not what is the average.

The information provided in this article is general in nature. Before acting on any information given in this article you must consider if it is appropriate for your circumstances, needs and objectives. It is recommended that you seek specific personal financial advice on the appropriateness of the information in this article before proceeding. You should also obtain and consider a Product Disclosure Statement (PDS) before making any decision to acquire a product.

[1] 'Claims we Paid - 2010 - AMP

At Primoris Financial we can compare 12+ Life Insurance companies to ensure you get the right policy at the right price!

Insurance Comparisons - Primoris Financial

Questions or would like to discuss your situation further? Contact Benjamin Irons on 0415 123 655 or email birons@primorisfinancial.com.au

The information provided in this article is general in nature and is intended for Australian Residents only. Before acting on any information given in this article you must consider if it is appropriate for your circumstances, needs and objectives. It is recommended that you seek specific personal financial advice on the appropriateness of the information in this article before proceeding. You should also obtain and consider a Product Disclosure Statement (PDS) before making any decision to acquire a product.

Financial Adviser | Ben is an Authorised Representative of Millennium3 Financial Services Pty Ltd AFSL 244252. Primoris Financial is operated by xLife Pty Ltd. xLife is a Corporate Authorised Representative of Millennium3 Financial Services Pty Ltd ABN 61 094 529 987, Australian Financial Services Licensee No 244252 issued by the Australian Securities & Investment Commission (ASIC). The views expressed in this publication are solely those of the author; they are not reflective or indicative of Millennium3 Financial Service's position, and are not to be attributed to Millennium3.

Source: EzineArticles
Was this Helpful ?

 
0
 
0
 
Rate this Article
 vote(s)
Feedback
Print
Re-Publish

Article Tags:

Tpd Cover

,

Life Insurance

,

Permanent Disablement

,

Total And Permanent Insurance

,

Compare Life Insurance

Your body needs glucose in order to get energy for cell and tissue function. Without energy, the cells do not function properly and the immune system is compromised. When your blood glucose levels

By: Clifford H Woods l Health & Fitness > Diabetes l July 09, 2013 lViews: 2617

Heavy Metals - Free radicals (tissue damaging molecules that cause aging and bodily deterioration) are the result of the ever-present toxins within our environment. Heavy metals are contained in

By: Clifford H Woods l Health & Fitness > Supplements l July 09, 2013 lViews: 607

Braun shavers and trimmers are very standard brand and their new curser beard and head trimmer is big for trimming beards. This trimmer was specifically made to be able to trim down your beard and

By: Lovey Blackburn l Health & Fitness > Beauty l December 20, 2012 lViews: 460

On this website you will find latest makeup reviews and swatches from real people. You will know how makeup products look in real life, and you can also participate! Post your photos, tips and

By: l Health & Fitness > Beauty l December 09, 2012 lViews: 321

You can either seek referrals from friends and associates or search for consultants on the internet. The latter, in our opinion, would be a viable option for those pressed for time.You can either

By: Simon Liva l Health & Fitness > Diseases l December 07, 2012 lViews: 269

Healthy living is essential in today's world, to ensure one's well being. Learn how to relax and improve your mood now! Be it exercising, or indulging in one's passions and hobbies, be sure to set

By: Clarinda l Health & Fitness > Mind Body Spirit l December 02, 2012 lViews: 262

Moving from one corner to another within a home may be difficult in big homes. The mobility issues are experienced by older people having health problems such as arthritis and heart problems. They

By: William Smithaal Health & Fitness > Disabilityl July 10, 2012 lViews: 213

Lifts are a great aid and they make transportation much easier. There are many different types of mobility lifts available in the market today. Each one has its own pros and cons.

By: William Smithaal Health & Fitness > Disabilityl July 10, 2012 lViews: 149

Bruno scooter lifts are specially designed for physically challenged individuals. These products help the disabled to easily move around in their homes. They can also be carried anywhere in their

By: William Smithaal Health & Fitness > Disabilityl July 10, 2012 lViews: 185

Scooters are a viable option for getting mobile. The mobility scooter market has been witnessing a tremendous rise in demand. There are many different categories of scooters available today like the

By: William Smithaal Health & Fitness > Disabilityl July 10, 2012 lViews: 204

Beaches are not only meant for those who are physically fit and are capable of playing and running on the sand. Physically challenged individuals too could visit the beaches and enjoy to the fullest.

By: William Smithaal Health & Fitness > Disabilityl July 10, 2012 lViews: 205

If you are amongst those who are frustrated about being dependent on others to move around in the house and outside, then you need to get yourself a helping hand. It is understandable that you cannot

By: William Smithaal Health & Fitness > Disabilityl July 10, 2012 lViews: 188