Total and Permanent Disablement (TPD) Insurance

What is TPD Insurance?

If you suffer from a disability that prevents you from working, TPD insurance could pay you a lump sum to support you and your family.

What are the Benefits?

It is important to know what you need to protect in order to know what type of cover is required. Lump sum payments can be used for benefits such as:

• Covering medical and rehabilitation expenses
• Reducing and clearing home loans and other debts
• Employing paid carers
• Generating an ongoing income stream to assist in meeting your future living expenses
• Setting money aside for future education costs for your children
• Protecting your long-term wealth accumulation strategy

How does it work?


Being permanently disabled has different definitions for each insurer. TPD insurance can cover either:

• Your own occupation—when you’re unable to work again in the job you were in before your disability. This cover is more expensive and usually not available through your super fund.

• Any occupation—when you’re unable to ever work again in any job suited to your education, training or experience. Although cheaper, this cover has a higher threshold to claim, so it’s less likely to pay out.

How do I buy TPD Insurance?

You can check if you already hold TPD insurance through your super as most super funds offer a default TPD cover that is cheaper than buying it directly. If necessary, you can increase your level of cover through your super fund.

You can also buy TPD insurance from:
• A financial advisor
• Insurance broker
• An insurance company

TPD insurance can be bought individually or packaged with life cover. If TPD insurance is in a package, your life cover may be reduced by any amount paid out on a TPD claim. Always check the Product Disclosure Statement and ask your insurer. For more information on TPD, contact Wagtail Wealth today.

For more information, contact us today. 

IMPORTANT NOTE: This information is general advice only and does not take into account your personal circumstances, goals and objectives. Therefore, you should consider its appropriateness for your circumstances before acting on this information.

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