Disability could be the least of your worries when you are an able-bodied person, but this can quickly change your world when you sustain a temporary disability or the worse happens and it becomes permanent. Will you be covered to make sure that your world continues when your legs stop? Here are six ways you can understand how Total and Permanent Disability insurance (TPD) can keep your world on its feet when you no longer can.
You can get Total and permanent disability (TPD) insurance
According to the Australian Bureau of Statistics (ABS), there are 4.2 million Australians who have a disability. Australians with a disability are 10% more likely to be unemployed when compared to the 5.3% of Australians without a disability.
Taking out a Total and permanent disability (TPD) insurance can help you during one of life’s many unforeseeable events. It provides cover if you are totally and permanently disabled.
Understand how your policy defines your cover
When applying for a policy it is advisable that you go through it carefully and understand what it does and doesn’t cover. Some covers will not consider it a permanent disability if you continue to work at your usual occupation or any other occupation. If you take off from work for a year that too won’t be considered a disability. You will have to ask your insurer to get an understanding of what is and isn’t covered before signing up for it.
There are four main typed of TPD policies that you will have to consider.
- Modified TPD – Covers you if you can’t perform activities of everyday living such as walking showering and eating.
- Any occupation – Covers you if you are disabled and can no longer work in any occupation.
- Own occupation – Covers you if you are no longer able to work at your usual occupation.
- Home duties – It covers your stay at home duties if you are a non-working partner.
What it does cover
TPD insurance is paid out in a lump sum that will help you sustain your lifestyle. It will help you take care of all the big things such as:
- The cost of rehabilitation and other medical bills
- Debt repayments
- The future cost of living
It can get you covered with structural adjustments to your home
Not being able to use your legs or other parts of your body can be frustrating, but with TPD you can ease some stress off your shoulder by using the lump sum pay out to add some structural adjustments to your home that will help accommodate things like a wheelchair.
Should you link it to your life insurance?
Combining your TPD with life insurance will be a decision you will have to make according to your preference. The benefits of having it linked together are that you can take care of yourself and your family while if you become permanently disabled, and you can continue to have them covered once you pass away. However, if you are looking for something that is affordable in the meantime then a standalone policy will be something you can consider.
Comparing available policies through a comparison site can ensure that you get the best policy for you and your family. It’s advisable that you speak to a consultant who will be able to help you get a better understanding of both Life and TPD insurance to get more peace of mind than confusion.