Total and Permanent Disablement Insurance

A Totally & Permanent Disablement (TPD) policy provides a lump sum benefit if as a result of a sickness or accident you are totally & permanently disabled.

The lump sum benefit provided can help to pay for your medical expenses, modifications to your home, your mortgage or any debts, day to day living expenses as well a lifetime income if you are never able to return to work.

In order to receive your benefit you must:

  • Have been continuously disabled for at least three to six months solely due to the sickness or accident.
  • You have been attended to by a medical practitioner and have had all reasonable treatment available including rehabilitation for your sickness or accident before you claim your TPD insurance.
  • Send to your insurer certification from at least one medical practitioner. Select insures may ask for two medical opinions.
  • Meet your definition of Total & Permanent Disability as outlined in your policy. Insurers generally offer four definitions to choose form from when you apply for your policy:

    • Own Occupation TPD: Pays a lump sum benefit if you are totally and permanently disabled and it is unlikely that you will ever be able to return to work in your own occupation.
    • Any Occupation TPD: If you are totally and permanently disabled to such an extent that it is unlikely that you will ever be able to return to any occupation for which you are reasonably suited to by training, education or experience.
    • Home Duties TPD: Pays a lump sum benefit if you are totally and permanently disabled and it is unlikely that you will ever be able to return to your regular home or domestic duties, which are defined as:
      • Cooking of family meals
      • Cleaning of family home
      • Family laundry
      • Shopping for family’s food
      • Taking care of any children or any dependents
    • Modified TPD: Pays your lump sum benefit if you become totally and permanently disabled and have suffered the loss of limbs or sight, you have suffered a loss of intellectual capacity over 3 – 6 months or you are permanently unable to perform at least two of the activities of daily living.

Generally, at the age of 65 or 70, your Own, Any or Home Duties TPD policy will convert to a modified TPD policy.

It is critical that you understand exactly which definition you require as there a number of significant differences between them. If you are not sure, please consult with a specialist who can advise you accordingly.

Information provided by xLife Pty Ltd, a corporate authorised representative of Millennium3 Financial Services Pty Ltd, AFSL 244252.

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