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Permanent Disability Cover

Permanent Disability Cover

Total and permanent disability cover (TPD) provides a lump sum payment in the event of you becoming totally and permanently disabled and unable to work again, whether through accident or illness.

The lump sum payment is paid to you, generally when you have been advised by a medical specialist that you will never work again. It can be used to clear debts, provide funds for medical and carer costs, renovate your home to accommodate the new disability (if required) and provide an annual income stream to ensure you maintain the same quality of lifestyle.

total and permanent disability cover

How Does Total And Permanent Disability Cover Work?

There are two different definitions of total permanent disability insurance: the Own Occupation definition means that the total permanent disability sum insured will be payable if you are totally and permanently unable to ever do the specific type of job you were employed in immediately prior to becoming disabled – even if you could do some other type of job. This definition is particularly valuable form of income protection and compensation for those in very specific areas of professional, executive or trades/manual work.   

The other, Any Occupation definition, will pay out only where one is unable to undertake any work as a result of one’s total permanent disability. As there is a lesser likelihood of pay-out with this form of total and permanent disability cover than with the Own Occupation definition, we recommend always taking up the Own Occupation definition.

How Do I Get Total And Permanent Disability Cover?

Total permanent disability insurance can be obtained as in a number of ways:

  • as lump sum cover on its own;
  • incorporated as an additional covered condition within your trauma cover;
  • as an inbuilt benefit within your mortgage protection, income protection or household expenses cover, at no extra cost;
  • as an optional benefit with mortgage protection, income or household expenses insurance, at extra cost.
total and permanent disability insurance