Personal Insurance for Total and Permanent Disability
T otal and Permanent Disability insurance (TPD) gives a lump sum to insurees who suffer an injury or illness
that leaves the person permanently and totally disabled. TPD insurance money is often used to pay off debts, pay
for medical and hospitalisation expenses or support any permanent lifestyle changes due to disablement.
Recent Figures from the Australian Network on Disability
As per AND, the following disability statistics should be enough to encourage people to have TPD Insurance:
"Almost 90% of disabilities are not visible"
Physical disability is a common concern of up to 3.4 million (15%) Australians
“15% of Australians of working age (15-64 years) have a disability”
78% of Australians with disability acquired their illness when they’re 16 years or older.
TPD: Definition and Coverage Information
TPD product providers differ in their definitions of what 'permanently and totally disabled' means. It is necessary
to carry out your own research regarding these matters, as well as speak to a financial expert to be ensure you
have a coverage that allows you to file a claim related to either of the following four definitions.
1. Being unable to work in your 'own' or 'any' work again.
2. Permanently unable to perform two of the following 'Activities of Daily Living' without physical help from
showering and bathing
undressing and dressing
drinking and eating
using the loo to carry out personal hygiene tasks
getting out and in of bed (or a wheelchair or chair)
moving from one place to another by wheelchair, walking or walking aid.
3. Inability to use limbs and loss of vision.
4. Suffer significant cognitive impairment (dementia-type illnesses).
'Own' or 'Any' Occupation Definition: Spotting the Difference
Most companies permit insurees to select what type coverage to when filing claims on being unlikely to be able
to work in their 'own' occupation or in 'any' other job in the future, after experiencing an injury or illness.
For example, a surgeon who injures her hands in a car accident may not be eligible for benefits under an 'any'
occupation definition, as she is still qualified (and able) to work as a general practitioner.
However, if the surgeon has an 'own' occupation policy, she may be eligible to claim, as she is unlikely to ever
work as a surgeon again. 'Own' occupation TPD provides a greater level of coverage. Your financial adviser will
be able to help you choose the best definition for your personal circumstances.
How Much Does It Cost?
TPD premiums vary according to many factors including your age and occupation. A 30-year-old male electrician or
female registered nurse could buy a TPD policy worth $639,356 for just $2.08 a day - or roughly the equivalent
cost of a takeaway pizza once a week.
Based on an Asteron life Complete policy, non-smoker, stepped premium paid annually, Queensland resident, any occupation
How Much is Enough?
How much Total and Permanent Disability insurance you require depends on a number of different factors. Your financial
adviser can assist you to accurately assess your circumstances and calculate the appropriate level of cover to
protect you and your family.