Total and Permanent Disability Insurance (TPD)

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TPD pays out a lump sum if you become totally and permanently disabled.

Depending on the type and cost of the TPD policy you will get the lump sum if you either:

    a) can’t work in your “Own” profession or

    b) if you can’t work in “Any” profession or

    c) only if you need permanent care.

TPD is a good alternative if Income Protection insurance is not suitable.

A surgeon with a tremor or a plumber with a weakened shoulder or an accountant who can’t concentrate for long periods qualify for a payout for TPD own definition.

A surgeon who can’t work as a consulting surgeon, a plumber who can’t work in a hardware store and an accountant who can’t work for 10 hours a week in an office job qualify for a payout under TPD any definition.

Under c) a person qualifies for a payout if they can’t do two activities out of getting out of bed, dressing, eating, using the toilet or bathing without another person’s assistance.

How much TPD do I need?

The cover is designed to help you to adjust to a big change in your ability to earn an income.

You can choose to be covered for “Any” occupation if you would like to be paid if you are unable to ever again work in any occupation. Most of us with a TPD policy have this version.

You can choose “Own” occupation if you would like to be paid if you are unable to ever work again in your own occupation.

The “Own” option provides much better cover so the premium is more expensive than for the “Any” option.

For example if you are able to earn 25% or more of your pre-disability income you may receive a payout under Own but not under Any.

The own option is not available for many manual professions.