Posted on Monday 30 January 2012
What does TPD Insurance stand for?
Total and Permanent disability insurance is a type of life insurance often used in the workplace and commonly shortened to just disability insurance. Briefly it covers you in case of any major accident that prevents you working on a permanent basis.
The unfortunate truth is that one incident can potentially unemployable or unable to work for the rest of your life. So what would you do if you became totally and permanently disabled tomorrow? You would be completely out of pocket with no chance of a stable income as you would be unable to work again. Bills could go unpaid and there might be no way to pay for that extra health care you might need. TPD insurance can help you if this situation was to occur.
This insurance is often used as an add on to an existing life insurance policy which you might hold within employment or outside of work on your own behalf. The insurance covers only covers you for permanently disabling issues, not those that only put you out of work temporarily no matter how long that time period may be. This includes things such as the loss of a limb, deafness, brain damage and complete blindness; generally anything which will stop you from being able to do everyday tasks on your own. You will often find that different vendors offer TPD insurance on different conditions than others. Therefore you should be wary when looking at what disability insurance to take out and if the conditions it covers may occur in your current working place.
Why should you consider Total and Permanent Disability Insurance?
Although you might deem it improbable there is always chance that you can get injured or sick at work, and not all of the conditions out there are only temporary. With life insurance you can only help your family if your injury at work is fatal, whereas TPD insurance means you are covered if you are terminally injured. The lump payment will help you and allow you to enjoy the remaining time with your family, making sure you continue to live the happy life you deserve.
Depending on your line of work, TPD insurance can be an essential consideration. Most Australian life insurance providers provide a total and permanent disability option. Shop around for what you think is the best deal, taking in to consideration the rates and maximum payouts for each plan. Some companies offer this information online, including MLC’s TPD Insurance which offers a maximum payment of $5 million.