Looking for TPD Cover?
What would happen if you could never work again? It’s a valid concern, and you’re definitely not alone. Total and Permanent Disability (TPD cover) is just what you need. All policies are different, but there are two variations you need to consider.
The first is TPD cover for when you can’t work in your usual occupation. For example, it would be impossible to continue working as a gardener if you lost a leg. It may not prevent you from working in other occupations though.
The second is TPD cover in the instance you can never work in any occupation again. Here, you’d only be able to claim if you were unable to work in any job. Generally, this cover will be cheaper than the first type of cover.
You’ll pay a bit more if you want protection against only being unable to do your usual job, as there is a higher chance of being able to make a claim.
It might sound complicated, but it really isn’t. Especially with Billy Explores help! Since arriving in Australia he’s been hard at work helping Aussies understand the types of insurance cover they need. Read on to learn all about TPD cover!
What Can I Use TPD Cover For?
TPD cover benefits are paid in lump sum. This means you have total control over how you spend the money. The lump sum benefit allows you and your family to make informed decisions on how to best use TPD cover. Below is a list of common things people use their benefit for.
- Medical expenses and rehabilitation
- Paying the mortgage
- Everyday living expenses like rent and utilities
- Children’s education
- Costs of re-training for a new career
- Home alterations if needed for mobility
- Getting rid of debts like loans and credit cards
Permanent disablement causes an extremely difficult time. It’s emotional for both you, and your family. You don’t want financial pressures stacking up on top of that. TPD cover lets you recover and move on with life while still meeting your financial obligations.
When Do I Claim on TPD Cover?
If you’re needing to claim on your TPD cover, you’re obviously going through a difficult time. Due to that, insurers will try to make the process as painless as possible. However, when determining if a claim is approved there will be some considerations.
One will be the extent of your injury or condition. If a full recovery is expected, you’re not considered permanently disabled. With that in mind, a partial payment may be made if an illness or injury is deemed serious but not permanent.
Another consideration is how your injury will restrict you. If you’re only covered for being unable to work in any occupation, you would need to show just that. A determination that you could realistically work in another type of job may see your claim refused. When you’re covered for not being able to perform your usual job, then you only need to prove that you can’t do that job anymore.
For other types of protection against work-restricting injuries, you may wish to consider other types of insurance, such as trauma or Income Protection.
What Other Insurance Should I Consider?
Trauma insurance is another lump sum payment, but it will cover you for serious injury or critical illness. For trauma insurance, you don’t need to be permanently disabled. It can help with your family’s expenses and your medical costs if you become critically ill or injured. This is a great type of cover to support you if you’re unable to work for an extended period.
As the name suggests, income protection helps when you’re unable to work. If you suffer an injury or illness and can’t work, it’s obviously hard to meet your financial obligations. Income protection pays up to 75% of your wage while you can’t work, alleviating a lot of financial stress.
What About Workers Compensation?
Did your injury occur at work? You should consider workers compensation. What about if you already have your own insurance though? No problem – you can still claim. By the same token, you can still make a claim on your TPD cover if you’re receiving workers compensation.
Depending on the situation, it is likely your TPD benefits will be affected by workers compensation payments. Each case will be different, but your insurer can provide guidance on this matter.
What is the National Disability Insurance Scheme?
The National Disability Insurance Scheme (NDIS) supports people who are disabled. It offers a range of services to help you live your life, however it won’t cover everything. If you become disabled suddenly as a result of an accident, you will certainly call on the NDIS for help but you will have other financial obligations too. Things like mortgage, medical costs, loan repayments – there’s a whole raft of expenses you still need to meet. That’s why you’re still going to want to consider TPD cover.
Can Everybody Get TPD Cover?
Pre-existing medical conditions could rule you out, and it’s best to check with individual insurers on how they handle that. Aside from that, most Australians will be eligible for TPD cover. As always, check with your insurer and always read the product disclosure statement carefully.
How Do I Compare TPD Cover?
Billy Explores wants nothing more than to help Australians. Firstly, he wants you to have the best health cover possible, and he also wants you to have it at the best price.