Total and Permanent Disability Insurance

What is TPD Insurance?

Total and Permanent Disability (TPD) insurance is a type of insurance coverage that provides a lump sum payment to the insured person in the event they become totally and permanently disabled and are unable to work again. This payment can help cover medical expenses, ongoing care, and lifestyle adjustments resulting from the disability.

Understanding TPD better

TPD insurance has two definitions

Own Occupation TPD: You’re considered totally and permanently disabled if you’re unable to work in your own specific occupation. This type of coverage is often preferred by professionals whose ability to practice their specific skill or trade is essential for their livelihood for example a surgeon, chef, tiler or plumber etc.

Any Occupation TPD: You’re considered disabled if you’re unable to work in any occupation for which you’re reasonably suited based on your education, training, and experience.

Your super would normally come with a default TPD insurance cover based on the ‘Any Occupation’ definition. However, ‘Own Occupation’ is generally considered the most comprehensive level of cover.