TOTAL & PERMANENT DISABLEMENT (TPD) INSURANCE

Have you thought about what would happen to you if you became totally and permanently disabled? Would you be able to meet your financial commitments and maintain your quality of life?

Total and Permanent Disability Insurance is normally an optional extra cover on a life or trauma insurance policy and commonly covers against you being permanently unable to work in your chosen occupation.

Why is it important?

If you choose to have Total Permanent Disability Insurance (TPD) added to your Term Life policy, this will provide a lump sum benefit to you in the event of a Total Permanent Disability. The insurance proceeds can be used to clear any debts and/or make alterations with your life going forward. This ensures that you are not forced to sell your home or other assets at 'fire sale' prices if the bank calls in the loan.

There are three main types of Total Permanent Disability insurance definition in Australia.

• Any occupation
• Own occupation
• Home-maker occupation

Saving you money! By getting the right advice and therefore the right policy, you won't end up paying premiums for many years to find that you had the wrong policy. It is wise to chat with an adviser about the wording behind the permanent disability definition before acquiring a product.