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What is Total & Permanent Disablement Insurance?

Total and Permanent Disability insurance provides a lump sum if you suffer an illness or injury that leaves you totally and permanently disabled and unable to work again.

Benefit payments are generally used to get rid of debt(s), pay for medical costs or fund any permanent lifestyle changes resulting from disablement e.g. home modifications.

Total & Permanent Disablement Insurance covers:

  1. Total and Permanent Disability
  2. Critical Illness Causing Disability

Injuries that may cause permanent and total disablement include complex fractures, loss of limbs, loss of sight, severe joint injuries, back injuries, paraplegia and quadriplegia.

 Any Occupation

The policyholder must be considered to be totally and permanently disabled and unable to perform the duties of ‘any occupation’ which he or she is reasonably suited to by education, training or experience.

Own Occupation

The policyholder must be considered to be totally and permanently disabled and unable to perform his or her own occupation.

Homemaker (Modified)

A home maker is someone who engages in full-time unpaid domestic (home) duties. Under a Homemaker (modified) definition the policyholder must be unable to perform full-time unpaid domestic duties due to total and permanent disablement.

Depending on the type of work you do, an ‘own occupation’ policy generally attracts a higher premium compared to an
‘any occupation’ TPD policy as it provides more defined cover.

Type of Premium Options

Stepped Premium

A Stepped Premium is based on the policy holder’s age and increases as you get older. The stepped premium option is generally more affordable in earlier years when the policy holder is younger and less affordable in later years when the policy holder is older.

Level Premium

A Level Premium is based on the average policy premium and is not linked to the life insured’s age. The level premium option is usually a less affordable in earlier years when the policy holder is younger but a lot more affordable when the policy holder is older.

TPD products vary in their definitions of what ‘totally and permanently disabled means. It is important to do your research and to speak to an expert to ensure you get the right cover for your individual needs.

The right amount of TPD Insurance cover really depends on each person’s individual circumstances, financial position and current life stage.

With the help of our expert team you can obtain the most appropriate level of cover for your individual needs without the hassles or the headaches.

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