Modified TPD

Modified TPD Insurance pays out a lump sum benefit in the event that through accident or sickness you are constantly and permanently unable to perform at least two of the activities of daily living without assistance.

no-1What are the Activities of Daily Living?

The Activities of Daily Living are generally defined as:

  • Bathing and/or showering
  • Dressing and Undressing
  • Eating and Drinking
  • Using a toilet to maintain hygiene
  • Being able to get in and out of bed or a wheelchair or moving by walking, wheelchair or walking aid.

no-2General Modified TPD Details

Minimum Entry Ages:16-64
Policy Expiry Age:65-100 (Depending on your insurer)
Max Sum Insured:$5,000,000

Modified TPD Quotes

  • Cover for activities of daily living
  • Include with Your Life Cover
  • Take out through superannuation
  • Free Buy Back Options
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no-3What can the benefit be used for?

Your lump sum benefit can be used to assist you and your family in a number of ways, including:

Mortgage and Debt repayments

Payment of other debts such as credit cards or car leases

Home Modifications

Medical Costs


In general, the majority of TPD Insurance companies refer to Modified Total and Permanent Disability (TPD) Insurance; however it may also be referred to as ‘Activities of Daily Living’ or Non Working TPD.

In general, in order to claim:

The insured must have suffered the loss of limbs or sight
The insured must have suffered significant cognitive loss or impairment where there has been a significant and permanent deterioration or loss of intellectual capacity for a period of at least 3 – 6 months.
The insured must be constantly and permanently unable to perform at least two of the Activities of Daily Living without assistance.

no-5The Partial Repayment benefit

Select TPD policies will generally pay out a partial benefit of up to 25% of the total benefit amount in the event that the insured suffers the permanent loss or use of one arm, one leg or sight of one eye.

Your full disability benefit will be available to you if become totally and permanent disabled

Case Study:

Peter is an engineer who had previously taken out TPD cover to make sure his Own Occupation was covered as defined in the PDS, his policy converted to Modified TPD. At age 70, Peter is diagnosed with the serious illness Alzheimer’s disease) and requires care and assistance to help him get dressed and go to the bathroom allowing him to receive a lump sum payment under the terms of his policy.

Published: March 30, 2015

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