Total_Permanent_Disability

TPD Insurance

Total and Permanent Disability (TPD) insurance pays out a lump sum when you suffer an injury or illness that leaves you totally and permanently disabled and unable to work.

Being unable to ever work again due to total and permanent disability would have a serious emotional and financial impact on you and your family. Having adequate cover in place for such an event can help secure your financial future and give you peace of mind.

The lump sum payment can be used for;
•    Clear any existing debts or other financial commitments.
•    Pay for ongoing living costs (utilities, rent or mortgage, food, and so on).
•    Pay for any medical costs you accrue due to your injury or ailment.

Many people use TPD insurance in conjunction with Income Protection insurance, since the latter generally only covers up to 75% of your regular monthly income. So the one-time boost to your funds provided by TPD can be used to immediately clear your outstanding commitments leaving you to use Income Protection as a monthly pay-out for you to live off of.

TPD Insurance vs Income Protection Insurance

Both forms of insurance are designed to help you and your family be more financially secure in the event that you are disabled and are unable to earn a regular income. However, there are two main differences between the two types of insurance:
1.    Income protection is an ongoing monthly payment (for a specified amount of time) as opposed to a one-time lump sum payment.
2.    Income protection provides for both short and long-term disabilities whereas total and permanent disability insurance is only for long-term/permanent disability.

Get expert advice

It would be a great feeling to know your family will be covered if you became disabled and were unable to provide for your family or receive an income? We can help ensure your loved ones feel financially secure.

Contact us today to find out more.