If a serious accident or illness left you unable to work, where would the money come from to pay the bills? 

Total and Permanent Disablement (TPD) typically results in very high medical and rehabilitation costs and may include additional costs such as home/car modification and the provision of ongoing care. 

TPD can be an optional extra on a life insurance policy or taken as a stand alone contract.  A claim is usually paid as a lump sum, when the disability meets the policy definitions.   

TPD insurance covers serious and permanent disablement but does not cover temporary disabilities or many traumas - these are best covered by Income Protection and Trauma policies. 

Benefits of TPD Insurance 

Total and Permanent Disablement Stand Alone pays a lump sum if you are totally and permanently disabled but is not linked to any Life Insurance.  This money can help replace your income, cover your medical and rehabilitation costs, and generally keep you and your family running during a difficult time. 

Definitions: 'Own' or 'Any' Occupation TPD

Total and Permanent Disablement (TPD) cover is generally offered by an insurer as either 'Own' or 'Any' occupation definition.  The choice is up to each individual that applies.  This should be discussed with your financial adviser.

Own occupation TPD

If the own occupation definition of TPD applies, generally you are considered to be totally and permanently disabled if:

• you have suffered a sickness or injury;
• and you have been absent from and unable to work because of the sickness or injury for a continuous period of at least 6 consecutive months; and
• in the insurers opinion, after consideration of medical and any other evidence, that you are incapacitated to such an extent that you are unlikely ever to be able to work again in the occupation in which you were last engaged before becoming unable to work. 

Any occupation TPD

If the any occupation definition of TPD applies, generally you are considered to be totally and permanently disabled if:

• you have suffered a sickness or injury; and
• you have been absent from and unable to work because of the sickness or injury for a continuous period of at least 6 consecutive months; and
• in the insurers opinion, after consideration of medical and any other evidence, that you are incapacitated to such an extent that you are unlikely ever to be able to work again in any occupation for which you are reasonably suited by education, training or experience. 

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