Total & Permanent Disability (TPD) Insurance

TPD insurance provides a lump sum payment if you become totally and permanently disabled due to illness or injury and cannot return to work. Often bundled with life insurance, TPD insurance ensures coverage for you and your family in the event of death or serious injury but can also be purchased separately.
If illness or injury permanently prevents you from working, your TPD policy will pay a predetermined sum to help cover ongoing medical costs, debts, mortgage repayments, household bills, and other expenses, safeguarding your family's future lifestyle. Additionally, TPD insurance can cover costs related to care, rehabilitation, and home modifications needed as you adjust to your new situation.

The amount of total and permanent disability (TPD) coverage you need depends on various factors, including your current income, future expenses, debts, and dependents.
Consider your current income: Could your family manage without it? Even if you don't have an income, being permanently disabled can significantly impact your ability to perform tasks like childcare, driving, and cooking.
TPD coverage can help alleviate the financial burden if you become permanently disabled.
If you have children, think about their future: Will you be able to afford their education if you can no longer work? Also, consider your debts and mortgage repayments: If you rely on your income to cover these bills, will you be able to pay them if you are unable to work? Rehabilitation costs can be substantial.
While health insurance may cover some of these expenses, it's essential to compare policies to ensure you're not left with significant out-of-pocket costs when you need it most.
Each insurer defines total and permanent disability differently and offers coverage for different situations.
Therefore, it's crucial to understand what is and isn't covered before purchasing a policy.
At Finsol, we can guide you to ensure you adequately protect yourself and your family based on your unique situation.

When you take out a Total and Permanent Disability (TPD) policy, it will be classified as either Own Occupation or Any Occupation.
It's crucial to know which type you have, as it affects your eligibility for a payout.
Own Occupation: Pays out if you become permanently unable to work in your specific occupation at the time of the claim.
Any Occupation: Pays out if you become permanently unable to work in any occupation that matches your experience, education, or training.
Example: Meet Kat, a mechanic who severely injures her arm and can no longer work in her trade.
Own Occupation: Kat can claim on her TPD policy because she cannot return to her job as a mechanic.
Any Occupation: Kat can only claim if she is unable to work in any job suitable for her skills, experience, and training.
If Kat previously worked in a call centre, her claim might be denied if she can still perform that job.
The key difference is that an Any Occupation policy has a higher threshold for claims, as insurers may consider you fit for other work based on your qualifications and experience.