6 ways TPD can take care of you while you get your life on track

Published on November 30th, 2020
  Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
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You can get Total and permanent disability (TPD) insurance

According to the Australian Bureau of Statistics (ABS), there are 4.2 million Australians who have a disability. Australians with a disability are 10% more likely to be unemployed when compared to the 5.3% of Australians without a disability.

Taking out a Total and permanent disability (TPD) insurance can help you during one of life’s many unforeseeable events. It provides cover if you are totally and permanently disabled.

Understand how your policy defines your cover

When applying for a policy it is advisable that you go through it carefully and understand what it does and doesn’t cover. Some covers will not consider it a permanent disability if you continue to work at your usual occupation or any other occupation. If you take off from work for a year that too won’t be considered a disability. You will have to ask your insurer to get an understanding of what is and isn’t covered before signing up for it.

There are four main typed of TPD policies that you will have to consider.

  • Modified TPD – Covers you if you can’t perform activities of everyday living such as walking showering and eating.
  • Any occupation – Covers you if you are disabled and can no longer work in any occupation.
  • Own occupation – Covers you if you are no longer able to work at your usual occupation.
  • Home duties – It covers your stay at home duties if you are a non-working partner.

What it does cover

TPD insurance is paid out in a lump sum that will help you sustain your lifestyle. It will help you take care of all the big things such as:

  • The cost of rehabilitation and other medical bills
  • Debt repayments
  • The future cost of living

It can get you covered with structural adjustments to your home

Not being able to use your legs or other parts of your body can be frustrating, but with TPD you can ease some stress off your shoulder by using the lump sum pay out to add some structural adjustments to your home that will help accommodate things like a wheelchair.

Combining your TPD with life insurance will be a decision you will have to make according to your preference. The benefits of having it linked together are that you can take care of yourself and your family while if you become permanently disabled, and you can continue to have them covered once you pass away. However, if you are looking for something that is affordable in the meantime then a standalone policy will be something you can consider.

Comparing available policies through a comparison site can ensure that you get the best policy for you and your family. It’s advisable that you speak to a consultant who will be able to help you get a better understanding of both Life and TPD insurance to get more peace of mind than confusion.

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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.

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