What is TPD insurance?

Generally, Total and Permanent Disablement (TPD) insurance is designed to cover the situation when a person is completely disabled and unable to work or earn an income but the definition can differ in each policy. This can devastate both the person who is permanently disabled and their family.

It is bad enough being temporarily laid up, but the prospect of never being able to earn an income again is daunting. Life insurance pays out for death and terminal illness, but what if a person doesn't die? Without insurance that covers total permanent disablement they may have to face a whole range of costs related to their disability in addition to all the normal household and family expenses and commitments.

These costs can include major alterations to the home to accommodate the disabled person, medical, rehabilitation and other costs connected with ongoing care and management of the condition.

What does TPD mean?

We have to be very careful in what we think TPD is and how it is defined for the purposes of insurance.

If you think TPD insurance will pay out a sum of money if you're disabled and can't do your normal job, this may not be exactly so. You need to read the insurer's product disclosure statement to get the exact definition TPD applicable to your policy.

A policy using the words 'inability to earn' usually means you can't earn in any way. For example, if you could do telemarketing, a sheltered workshop job or anything that will give you remuneration the insurer would not cover you.

Where it says 'total physical loss' the loss has to be in pairs - both eyes, or both limbs, or one eye plus one limb.

Who should consider Total & Permanent Disablement Insurance?

Everyone thinks it can't happen to them. These terrible accidents or debilitating diseases happen to other people. Unfortunately they can and do occur and if so, being able to rely on an insurance payment can be a huge relief. It won't bring a person back to where they were, but it will go a long way to helping them reinstate their life as best they can. And it will certainly help their family cope and move forward.

What Cover is Available for TPD?

TPD covers are available as part of life insurance policies. Many insurance companies offer these options and it is important to compare life insurance and life insurance rates to find the best policy for you. In this way you'll find out what cover is available with life insurance policies that include TPD.

TPD policies generally pay you a lump sum payment in the event that you suffer a Total & Permanent Disability. When applying for the policy you can apply for the available benefit amount that you wish to be paid. Generally the higher the benefit amount the higher the premium you will pay for the policy.

How to Apply or Find Out More.

It's simple, either request life quotes here or just call us on 13 55 55.


These articles are provided as reference material to allow more informed decision making, but are not intended as being a complete source of information on any topic. All readers should make their own independent analysis on the topic to make sure they have considered the aspects that are important to them.