TPD insurance is becoming ever more popular among Australians in all walks of life, and there is a good reason for this. But what is TPD insurance, and why are so many people now realising the wisdom in protecting themselves with a policy? This article digs deeper into the subject and offers some insights and recommendations before you start comparing policies.
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What is TPD Insurance?
The letters TPD in the name stand for ‘Total Permanent Disability’, and this insurance policy covers people unfortunate enough to find themselves thus affected. With a few exceptions we will examine later, TPD insurance provides a significant financial settlement to any policyholder unfortunate enough to be eligible to claim. The reasons for the condition can include almost anything, from accidents and misadventures to debilitating diseases and deliberate acts by outside parties.
Is TPD Insurance Right for Me?
If a large lump sum of cash sounds like something you could use if you are totally and permanently disabled for any reason and you can afford the premiums, then TPD insurance is right for you. Facing such an appalling ordeal will never be fully alleviated, no matter how much money is involved. Still, it can make life much easier and more comfortable, even if it cannot restore your health and mobility.
Am I Eligible for TPD Insurance?
TPD insurance policies are, perhaps understandably, rather stringent in their conditions and eligibility criteria. Some typical factors affecting the decision to provide coverage include:
- Age — These restrictions are particularly severe with TPD insurance, and only individuals between 19 and 62 will be provided coverage. It is worth noting that TPD insurance policies are often subject to periodic re-negotiation, and premiums tend to rise as the holder ages.
- Lifestyle choices — Anyone seeking TPD insurance must account honestly for their lifestyle choices and declare any activities or habits deemed dangerous. These include, but are not limited to, general fitness, recreational drug use (including nicotine and alcohol), dangerous hobbies and pastimes, and any other activities hazardous to health and well-being.
- Pre-existing medical conditions — Any hereditary medical conditions or existing issues must be declared and will be taken into account.
- Employment — Only Australians engaged in ‘gainful employment’ may apply for TPD insurance.
- Hazardous occupations — Those individuals lucky enough to have gainful employment but work in risk-filled environments may be asked to pay higher premiums or, in some cases, denied coverage entirely. It is crucial to discuss this with your chosen TPD insurance provider and make them aware before signing any policy.
Any change in circumstances that may affect your susceptibility to total and permanent disability must be declared, or you risk the denial of any claim. These changes need not be negative; you are entitled to re-negotiate your policy if you give up any dangerous activity or habit stated in your initial declaration.
Conclusion
Any statement about TPD insurance that applies to all Australians is impossible and would be disingenuous. What is safe to say, however, is that TPD insurance could lift a huge financial burden from your shoulders if the worst comes to pass, and any individuals who can afford the premiums would be well advised to consider it.
