Whether you need Total and Permanent Disability insurance depends on several different factors. The main question you have to answer is: Do you have the financial resources to support yourself and your family if you become seriously ill or disabled?
Most people would answer ‘No.’ For this reason, the majority of people benefit from having TPD cover.
Total and Permanent Disability insurance can provide a much-needed lifeline if you suffer an illness or injury that makes it so you can no longer work. Unfortunately, lodging a claim and obtaining a favourable outcome can be challenging and extremely frustrating.
TPD Compensation Lawyers are here to help. Call 03 9966 7188 today for a FREE consultation over the phone or at our office in Melbourne.
What Is Total and Permanent Disability Insurance?
A Total and Permanent Disability (TPD) policy acts as a ‘safety net’ for those who are seriously injured or ill. With TPD insurance, you are entitled to a financial benefit if a health condition completely and permanently prevents you from working.
You will need to meet the definition of Total and Permanent Disability to be eligible for a payout. The specific coverage and eligibility criteria for TPD differ between insurance policies and insurers:
- With ‘any occupation’ cover, you are entitled to a benefit if a disability renders you unable to perform any occupation for which you are suited.
- Unlike ‘any occupation’ cover, ‘own occupation’ cover defines Total and Permanent Disability as an inability to work in your pre-disability occupation.
- ‘Activities of daily living’ refer to the basic self-care tasks that most people perform every day. To obtain a TPD payout, you will need to show that you are incapable of performing certain tasks.
Situations that are generally covered by TPD insurance include:
- Heart Attack & Stroke
- Cancer
- Accidental Injuries (including spinal injury, loss of a limb, brain injury, etc.)
- Musculoskeletal Disorders (including arthritis, tendinitis, carpal tunnel syndrome, etc.)
- Vision & Hearing Loss
- Mental Illness
- Neurological Disorders
Read More: What Are the Most Common TPD Claims?
You May Already Be Covered
According to the Australian Securities & Investments Commission, approximately 9 million people in Australia have TPD cover. More than 85% of these individuals are covered through a superannuation fund.
Life and TPD cover are usually included automatically in a super fund. If you purchase life insurance, you may also have the option of adding TPD and income protection insurance.
Is TPD Cover Worth It?
Ultimately, whether it is worth having Total and Permanent Disability insurance depends entirely on your unique circumstances. Some of the most important things to consider include:
- Income and savings: Are you able to routinely save money, or do you live paycheck-to-paycheck? For people in either situation (but especially the latter), TPD insurance can provide financial security in the event of an emergency.
- Living expenses: Consult your monthly budget. In addition to regular expenses like a mortgage or rent, necessities, credit card payments, etc., do you have enough money to pay for unexpected expenses (such as medical bills)? A TPD payout can help you cover these and other costs.
- Family and dependants: People with a spouse and/or children who depend on their income are wise to think about what would happen if they have a life-altering injury or illness. TPD cover can help you and your family get by.
- Likelihood of injury: Accidents can happen to anyone, but some lifestyles and occupations have a much higher risk of injury. Individuals who engage in high-risk activities on the job or in their personal lives may want to consider Total and Permanent Disability cover.
- Current insurance policies: Review your existing insurance policies—such as Medicare and private health insurance, income protection insurance, trauma insurance, etc.—to see if the cover can help provide support if you have a total and permanent disability. If not, you may need TPD cover to help fill any gaps in your insurance.
Australia’s Superannuation Guarantee ensures that many workers already have super through their employer. With many super funds including TPD insurance by default, the good news is that a number of workers already have Total and Permanent Disability cover. Because employers generally pay the premiums, some people might not even realise they have TPD insurance.
If this situation does not apply to you (e.g., you are self-employed, your employer’s super fund doesn’t include TPD cover, etc.), it is worth considering the factors above to determine whether it is in your best interest to buy a TPD policy. Generally speaking, the benefits of Total and Permanent Disability insurance far outweigh the cost of the premiums.
Get the Legal Guidance You Need
A financial adviser can help you decide whether you need TPD insurance. If you have TPD cover and are no longer able to work due to an illness or injury, consulting a knowledgeable lawyer is essential for getting your claim accepted and obtaining the maximum payout.
TPD Compensation Lawyers have extensive experience with Total and Permanent Disability claims. We have an in-depth understanding of how TPD insurers operate and the challenges you might face in applying for a benefit. Our firm is committed to helping clients overcome obstacles and pursue their full entitlement.
Not sure where to start with Total and Permanent Disability insurance? Contact TPD Compensation Lawyers for FREE. Our lawyers serve clients in Melbourne and throughout Victoria.