Being unable to ever work again due to total and permanent disability could 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. This is where TPD insurance may be able to help.
TPD insurance pays a lump sum benefit to you in the event of total and permanent disability as a result of sickness or injury. You choose the level of cover at time of application that best meets your circumstances and budget. This payment could provide you with financial security by ensuring there is enough money to:
- cover any unexpected medical or hospital bills
- make modifications to your home if needed and access the best medical treatment for your condition
- pay off debts provide a lump sum which could be invested to provide you with an ongoing income stream and top up any income protection benefit
The information below generally relates to policies arranged using an adviser like Experien Insurance Services. Some of the features below may not be applicable or available if you access TPD cover automatically via a superannuation fund or directly with an insurer.
Considerations when buying TPD Cover
Your insurer may offer you flexibility in the way you structure your cover. In addition to choosing whether to hold cover as stand alone or linked with Life Cover, you may have the ability to hold own occupation TPD outside super and any occupation inside super – allowing you to fund (commonly roughly two thirds of) the premium from super but still have the comfort of knowing that benefits will always be accessible when you need them the most.
Some insurers may offer you a choice of up to five different types of TPD cover depending on your age and whether you are in or out of the workforce: Own occupation, Any occupation, TPD Super Solutions; Home Duties or Non-working.
Worldwide cover, where offered, means you are fully covered, 24 hours per day anywhere in the world.
A Guaranteed upgrade of benefit means we an insurer will automatically pass on any future enhancements to your policy, provided they do not result in an increase in your premium.
Guaranteed renewable, again if offered, means and insurer will guarantee to renew your Cover each year up until the policy expiry, so long as you continue to pay your premiums when due. They cannot cancel your cover, or increase your individual premiums because of any change in your health, occupation or pastimes.
Built in and extra cost optional features
A range of built in benefits may be included as well as a selection of extra cost options could be offered which will allow you to tailor your TPD Cover to your specific needs. Examples of features found in various policies include :
- Indexation Benefit – cover will be indexed each year to ensure your benefit amount maintains real value
- Accelerated Life Cover Buy Back Option – where TPD Cover is linked to Life Cover
- Specific Loss Benefit – a partial benefit amount if you suffer loss of one limb or sight in one eye
- Disability Premium Waiver Option – premiums waived if you are totally disabled for 3 months or more
- Future Increase Benefit – the ability to increase your benefit amount at a later date without medical underwriting
- Business Guarantee Option – increase benefit amount by up to 3 times the original benefit without medical underwriting
- Waiver of Qualifying Period Benefit for specific medical conditions
- Life Cover Purchase Option – convert stand alone TPD Cover to Life Cover after a full TPD claim
- Death Benefit – $10,000 if you have stand alone cover and no TPD benefit is payable
- Child Cover Option – up to $200,000 if your child suffers a specified trauma condition, terminal illness or death
- Life Cover Buy Back Benefit – where TPD Cover is linked to Life Cover, the Life Cover benefit amount will be reinstated 1 months after a TPD benefit is paid
- Accommodation Benefit – up to $250 per day for up to 30 days to help cover the cost of a family member to be with you if you are confined to bed
- Financial Advice Benefit – we will reimburse up to $2,000 for the cost of seeing a financial adviser as a result of a claim
- Suspending Cover Benefit – put your cover on hold for up to 12 months
- Premium Freeze Benefit – benefit amount will decrease each year with age and premium will remain fixed
This information is current as at April 2019. This article is intended to provide general information only and has been prepared without taking into account any particular person’s objectives, financial situation or needs (‘circumstances’). Before acting on such information, you should consider its appropriateness, taking into account your circumstances and obtain your own independent financial, legal or tax advice. You should read the relevant Product Disclosure Statement (PDS) before making any decision about a product. Each insure may offer features that differ from the above.
