Total & Permanent Disability

TPD insurance is usually only available as a package with life insurance and cannot be for a sum greater than the level of life insurance.

This type of insurance pays an agreed sum if you become incapacitated and are unable to work. Each insurer has their own definition of what makes a legitimate TPD claim. Some insurers might pay a claim for the loss of sight in one or both eyes, or the loss of use of one or both hands, arms or legs.

The definitions can be quite technical, so make sure you read the fine print.

Like life insurance, TPD can usually be taken out through your Superannuation fund. There are tax implications for holding cover under super. You will need to seek advice before implementing.

Guide to using Insurance to transfer risks