In life change is the only constant. Some changes hold you back for a while. Some changes are too permanent to ever come back from. This is precisely why we have Total and Permanent Disability Insurance, commonly known as TPD insurance, available to us in Australia.
Definition
TPD Insurance pays you a lump sum amount if you become totally and permanently disabled and the following conditions are true:
- You have been disabled continuously for a minimum of three to six months, solely because of the injury or illness.
- You need to have attended a medical practitioner and undergone all reasonable and usual treatment, including rehabilitation for injury or sickness before you can claim your TPD insurance, the general time frame is six months.
- Your insurer requires certification from at least one medical practitioner. Select insurers may ask for a second medical opinion to confirm that you are totally and permanently disabled.
- To prove that you are permanently disabled select insurers may choose to seek other evidence besides medical evidence, in case it is required.
Types of TPD Insurance Covers
There are four kinds of TPD Insurance policies available to us. It is very important to understand the distinction in order to make an informed decision on the type of TPD cover that may suit you. Here, we explain the different TPD policies:
Own Occupation TPD applies if you were unable to ever return to work in your own occupation because of the illness or injury. For example, if a call centre professional loses the ability of speech, and can never work in a call centre again.
Any Occupation TPD applies if the illness and injury prevents you from returning to any kind of work that you are suited for, in terms of your education, training and experience. This is the most common type of TPD insurance available in Australia.
Home Duties TPD – If an accident or illness prevents a householder, who does normal household chores, from doing duties like:
- cooking meals for family
- cleaning of the house
- doing family’s laundry
- shopping for family grocery
- taking care of any dependent children
then, they are able to make a claim.
Modified TPD (Activities of Daily Living) is applicable if you cannot independently perform at least, two of these five everyday tasks permanently
1. Bathing
2. Eating
3. going to the Toilet
4. dressing and undressing
5. permanently and totally,
Select insurers recognise the inability to work, both, due to physical or cognitive damage, as long as it can be proven and there is a need for permanent and continuous supervision, as a case for added TPD claim.
Bundling your TPD policy
You may choose to have your TPD under your existing Life or Trauma insurance to save you money. Conversely, you may prefer a stand alone policy.
How much disability cover you need can often be decided by the combination of your present debt, your family’s ongoing expenses and a rough estimation of possible medical expenses.
For all your TPD queries, how to bundle TPD to get the suitable cover and understand anything else: Call now. We will answer your questions, compare quotes and give you appropriate options. And, we will make it really simple. Remember, no question is too big or too small. Let out financial experts help you. It’s free! All you need to do is just call.