What is TPD Insurance and Why Should I Have It?

Have you thought about what you would do if, all of a sudden, you could no longer work?

Total and permanent disability cover (TPD) is designed to take the pressure off you financially if you suffer an injury or illness that leaves you totally and permanently disabled. 

It is almost always purchased together with life cover and can provide a lump sum payment paid to yourself generally after a medical specialist has advised that you will never work again due to your injury or illness.  The payment is most often used to clear out debts, provide funds for medical costs and annual income streams to ensure you maintain the same quality of lifestyle.

Each insurer has different definitions of what is and isn't considered to be totally and permanently disabled. Depending on the policy you choose, they may define TPD as either when:

  1. You can't work again in any occupation, or
  2. You can't work in your usual occupation

Someone is usually deemed totally and permanently disabled if they are unable to perform two or more activities of daily living without assistance.  These activities can include:

  • Bathing and showering
  • Dressing and undressing
  • Eating and drinking
  • Using a toilet to maintain personal hygiene
  • Getting in and out of bed (or a chair or wheelchair)
  • Moving from place to place by walking, wheelchair or walking aid

Have you thought about what you would do if, all of a sudden, you could no longer work because you were unable to perform these tasks?

Lakeside Financial Planners can assist with personal insurance to protect your income in the event of death, injury or illness.  To find out whether you have appropriate and accurate cover, why not schedule a meeting with Gerry or Clae now?


By Matrix Planning Solutions.  Information current at 17 June 2015.  The advice is general in nature only. Before acting you should consider the appropriateness of the information having regard to your personal objectives, financial situation and needs. You should read the relevant Product Disclosure Statement (PDS) and Policy Document before making any decision about a product.