TPD, also known as total and permanent disability cover, is a type of insurance. It is designed to provide financial support should you suffer a permanent disability that prevents you from earning income. TPD covers illness and injury that affects your ability to return to work in a full capacity.
What Disabilities Are Covered Under TPD?
Many disabilities are covered under TPD. The most common include:
- Severe physical injuries
- Mental health disorders
- Loss of Sight
- Loss of hearing
The definition of disability will vary from one insurer to the next. It’s important to understand what your insurance company views as an eligible disability. Always read the product disclosure statement, so you know what’s covered and what isn’t.
Three Types of TPD
There are three main types of total and permanent disability cover. The first is any occupation. This type pays a lump sum if you are permanently disabled and unable to continue working in your field or any occupation that you are qualified to work in.
Own occupation will pay a lump sum if you are disabled and can no longer work in your current occupation only. Policies that fall into this category tend to cost the most because they are more likely to pay out due to the specific nature of the requirements.
Living expenses/nonworking TPD pays a lump sum if you are disabled and unable to independently conduct two or more of the Activities of Daily Living. These are basic activities like dressing yourself, eating and bathing. This type of cover requires a severe disability, making it the hardest of the three to successfully claim.
Am I Eligible for TPD Compensation?
A legal expert can provide insight into whether or not your situation makes you eligible for TPD compensation. Call Carew Lawyers today to discuss your circumstances and learn more about disability claims.