Total and Permanent Disablement (TPD) cover pays an agreed lump sum should you become totally and permanently disabled through illness or injury.
Your family can suffer from your disablement both financially and emotionally. If you were to become Totally and Permanently Disabled, it could create an adverse financial burden, preventing you from earning an income at a time when you may have ongoing expenses such as medical and/or rehabilitation costs.
By helping to ease financial concerns, TPD benefits go some way towards easing the effects on you and your family.
To be classified as TPD two things must occur:
- You must suffer an injury or sickness
- The injury or sickness must result in total and permanent disablement.
It is important to note that there are different definitions of TPD for different insurers. Most importantly, it relates to the definition of what work you are not able to perform.
You have to carefully examine the definitions of TPD in the policies PDS. However, you need to be aware that some definitions are as follows:
- Totally disabled from undertaking ANY occupation for which the insured is suited by reason of training, education or experience
- Totally disabled from undertaking your OWN occupation.