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Essentially, TPD may provide financial security for you and your family if you were unable to work due to becoming ‘totally permanently disabled’ from illness or injury. But every provider typically has a different definition for ‘totally and permanently disabled’, which is why it’s important to read the product disclosure statement (PDS) before choosing a provider.
Each Life Insurance provider has their own definition of how TPD is covered within their products. More specifically, the amount of benefit you may be able to claim could depend on how these definitions are worded in your policy:
Depending on your provider and policy, you may qualify for a benefit payment if due to sickness or injury you meet any or all of these criteria:
If you choose Accident Cover, you typically won’t be covered if you suffer a TPD due to an illness or sports injury. The same rule may apply for each type of cover, which is why it’s important to assess what cover is suitable for you and what’s included in your policy before signing up. Additionally, intentional self-inflicted injury is often a standard exclusion on TPD policies.
If you become Totally and Permanently Disabled and you’re insured with suitable cover, you may receive a one-off lump-sum payment to help pay for rehabilitation, debts and your future cost of living. How much depends on your disability, the terms of your policy and the eligibility of your claim.
When it comes to claiming TPD, you need to notify your insurer as soon as possible after an injury or illness. Depending on what TPD cover you have and your disability, your insurer may ask for the following:
Your insurer will then determine if you have suffered a TPD and the payout amount.
Some super funds actually include TPD cover, it’s important to check with your superfund to ensure its sufficient coverage if something were to happen.
When you purchase TPD insurance, you generally get a choice between two types of premiums:
First up, think about the expenses you’ll need to cover if you’re sick or injured and unable to work, such as:
Then think about what you already have that might help cover those costs and calculate the difference:
TPD insurance is not a legal requirement, even if you work in an environment or setting where the probability of you being in an accident which makes you permanently disabled is higher.
If you do work in a high-risk profession, you might want to learn more about your coverage through Workers Compensation, and how that could help cover wages, as well as medical expenses and rehabilitation if you’re injured at work.
However, if you’re a sole trader you won’t be covered by Workers Compensation, and might want to consider Life Insurance products such as Income Protection, TPD, and or Trauma insurance.
Before you decide on your provider, some of the factors which may be worth double-checking are:
While price is an important factor to consider when comparing policies, it’s not the only important factor. Ensuring that you understand the level of cover included, and the potential benefits if you were to make a claim, can be just as important.
Before you get TPD insurance, it’s a good idea to ensure there’s nothing that could potentially get in the way of you making a claim. That’s why you should be upfront with your insurer and give them all the information you can before you sign up. They’ll usually ask for your:
Depending on the provider, you may be required to perform a blood test in order for the insurer to have an accurate view on your health, and therefore make a more accurate assessment of your risk level.
The cost of TPD insurance varies depending on the person applying for it and whether or not they’re buying it separately, adding it on to their super, or buying it as a package with Life Cover. If you’d like help comparing your options, iSelect has partnered with Lifebroker to help you compare from their available policies.
Yes, typically you can bundle TPD cover as part of your Life Insurance policy You can also bundle Trauma Cover with a Life Insurance policy unless your Life Insurance policy is held through your superfund. In some cases, you may be eligible to receive a discount by bundling two or more policies with a single insurer.
Yes, depending on your policy and provider you may be able to insure multiple people on the policy. For example, a married couple may decide to insure both of their lives in one policy. Depending on the insurer, you could be eligible for either a percentage or flat rate discount on your premiums when a second person is added to the policy.
iSelect has partnered with Lifebroker to help you find TPD insurance policy from their range of providers. Start comparing TPD policies online today, or call our friendly team on 13 19 20.