This policy will pay a lump sum if you become disabled and are unable to work again. You can use this lump sum to pay off debts, cover medical costs and invest so that you have an annual income to help maintain your lifestyle. Common claims are blindness and mental illness.

The meaning of total and permanent disability can vary and is defined in each policy document. Some occupations have an option allowing you to choose the types of total and permanent disability insured. The benefit is normally provided as an advance payment of a death benefit or on a stand-alone basis.  TPD insurance is often taken out to help pay for medical expenses and meet ongoing living expenses.  The recommended Total and Permanent Disablement (TPD) insurance cover may also assist in providing you with funds to cover personal and business debts in the event of your Total and Permanent Disablement.

TPD Insurance gives you the option of taking an “own occupation” policy or an “any occupation” policy.  An “own occupation” policy means the insured is considered totally disabled if they cannot perform the duties of their own occupation. Under this definition, benefits can often be paid to an insured person even if they subsequently (after filing a claim) become employed in another occupation. An “any occupation” policy means the insured will be considered disabled only if they are unable to perform the duties of any occupation for which they are qualified by education, training or experience. It is important to have the right advice for which type of TPD policy would be best for you. Some TPD policies are able to be held within the superannuation environment, whilst others cannot be. To be certain you have the right type of TPD insurance, with an insurer that suits your needs, held in the right ownership structure, it is vital to seek expert advice on the Sunshine Coast.

 

Examples of TPD Insurance claims paid by TAL in 2011

Occupation

Age

Gender

Cause

Benefit Paid

Insurance Worker

40

M

Paralysis of both arms and both legs

$1,729,132

Manager/Executive

42

M

Depression

$842,758

Administration Manager

42

F

Paralysis

$1,653,750

Builder

33

M

Bowel Cancer

$1,050,000

School Principal

46

M

Heart Disease

$232,627

Manager/Executive

34

M

Stroke

$593,296

 

Source: TAL Claims Statistics 2011, TAL Life Limited.