What is TPD Insurance and do I need it?

A serious injury or illness can make it difficult or impossible for you to continue to work. If this happens, you will need to find a way to support yourself and your family.

Total and permanent disability cover (TPD) is designed to take the pressure off you financially if you suffer an injury or illness that leaves you totally and permanently disabled. 

It is almost always purchased together with life cover and can provide a lump sum payment paid to yourself generally after a medical specialist has advised that you will never work again due to your injury or illness.  The payment is most often used to clear out debts, provide funds for medical costs and annual income streams to ensure you maintain the best quality of lifestyle possible.

Each insurer has different definitions of what is and isn't considered to be totally and permanently disabled. Depending on the policy you choose, they may define TPD as either when:

1. You can't work again in any occupation, or
2. You can't work in your usual occupation

for which you are reasonably suited by education, training or experience.

Have you thought about what you would do if, all of a sudden, you could no longer work?

Your Financial Adviser can assist with personal life insurance to protect your income in the event of death, injury or illness.  To find out whether you have appropriate and accurate cover, why not schedule a meeting with your financial adviser now?

Disclaimer
Information current as at 10 March 2016 - This information is of a general nature only and has been prepared without taking into account your particular financial needs, circumstances and objectives. While every effort has been made to ensure the accuracy of the information, it is not guaranteed. You should obtain professional advice before acting on the information contained in this publication. You should read the Product Disclosure Statement (PDS) before making a decision about a product.