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What is TPD cover?
TPD, which is also known as total and permanent disablement insurance, is a policy that pays out a lump sum payment should you become permanently disabled which prevents you from working. What is defined as a disability will differ from insurer to insurer. Therefore, it is useful to read what is outlined in the policy you take. The general rule of thumb is that you need to be totally and permanently disabled and won’t be able to work in any occupation.
What are your chances of becoming disabled?
Australia currently has 4.2 million people that are disabled, which is 1 in 5 Aussies. Only 53% of people with disabilities have a low participation when it comes to the workspace. According to the Australian Network of Disability, unemployment rates among people with disabilities are 9.4% higher than able-bodied people.
Injuries can happen on the job or outside of your workspace, even if you do not handle heavy equipment and machinery. 1 in 6 Australians are affected by hearing loss, and an additional 357,000 people are blind or have a low vision which can affect how they perform at their occupation. These numbers are expected to increase in the next few years. Not being prepared financially can leave you exposed in a time when you need it the most.
How much will it cost?
TDP insurance is designed to be tailor-made to suit your needs. Insurers will look at various factors of your life to ensure that you get adequate cover. For example, they will assess the level of risk your occupation has, whether you are male or female, and the number of dependents you have. This is to make sure that when you make a claim you will have an adequate amount to cover your daily expenses, medical expenses, and transportation to medical facilities. Therefore, the amount you will pay will differ from insurer to insurer. This is why you will have to compare your quotes to see which one will give you value for your money.
Check the limitations
TDP insurance makes a great combination with any life insurance policy to provide you with adequate cover. However, before you apply it is vital that you check the limitations of the policy such as what it defines as a total and permanent disability. Keep in mind that you will not be able to make a claim if you are able to function and work in any occupation, even if you are running your own business from home. You can still claim if you are unable to take care of daily activities such as washing and feeding yourself.
TDP insurance is designed to ensure that you are covered financially no matter what curve balls life throws at you. You can find an affordable cover by comparing various quotes or speaking to a broker who will be able to find a solution that suits you.
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This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.
The content on our website is produced by experts in the field of finance and reviewed as part of our editorial guidelines. We endeavour to keep all information across our site updated with accurate information.
Savvy is partnered with Compare Club Australia Pty Ltd (AFS representative number 001279036) of Alternative Media Pty Ltd (AFS License number 486326) to provide readers with a variety of life insurance policies to compare. Savvy earns a commission from Compare Club each time a customer buys a life insurance policy via our website. We don’t arrange for products to be purchased from these brands directly, as all purchases are conducted via Compare Club.
Savvy does not compare all life insurance policies or providers currently operating in the market. Any advice presented above or on other pages is general in nature and doesn’t consider your personal or business objectives, needs or finances. It’s always important to consider whether advice is suitable for you before purchasing an insurance policy.
For any further information on the variety of insurers compared by Compare Club or how their business works, you can read their Financial Services Guide.
