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TPD Insurance

Total and Permanent Disability (TPD) insurance provides you with a lump sum benefit if you are no longer able work because you have been totally and permanently disabled as defined by the insurer. Specific definitions often vary from one insurer to another.

You have discretion over how to spend your benefit payment, such as using it to cover your medical and rehabilitation expenses, or renovating the house to accommodate your condition. You may also use it for your daily expenses and to repay your debts.

  • Total and Permanent Disability Insurance specialists No need to shop around - quotes from 12 insurance companies at once
  • Lowest pricesWe guarantee the lowest price in Australia for a stepped premium*
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  • We make it simpleOur knowledgeable staff will guide you through the features and benefits available with the different TPD options on the market
  • Dedicated claims managementIf something does go wrong, we are here to help you through the process, complete the paperwork with you and liaise with the insurers on your behalf

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Common Questions

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Why Do I Need TPD Insurance?

You need TPD insurance because it may be able to help:

• Pay for your medical and rehabilitation expenses ongoing medical treatments and rehabilitation may cost a considerable sum of money. Your TPD insurance benefit payment may be able to cover these expenses.

• Replace your income­ you will probably lose your income if you’re unable to work. You may use the lump sum benefit to replace that income and pay for your daily expenses, other debts and any regular expenses you may have.

• Fund your property’s renovation­ your property may need changes to suit your needs if you have reduced mobility due to your condition. You may need to do renovations, or potentially even move house. The benefit payment may then be used for this purpose, including the construction of ramps and installation of railings.

• Complement your private health insurance TPD insurance may be able to cover conditions or procedures that your private health insurance doesn’t.


What Does TPD Insurance Cover?

Each insurance company has slightly different definitions of Total and Permanent Disability. In general, it is a condition that prevents you from being able to return to work again. You may choose to be covered for your own occupation, any occupation, or for home duties if you are engaged in full-time domestic duties.


Total and Permanent Disablement (Own Occupation)

Own Occupation Total and Permanent Disability covers you if you are reasonably considers to not ever be able to work in your own occupation due to a illness or injury.

So, if you are a surgeon, and damage your hands, you may be therefore classified as being unable to perform the duties of your own occupation.

If you're covered for your 'own occupation', you have to generally meet one of the following conditions:

You have become so incapacitated that you're never likely to work in your own occupation again. This means you have been absent from your own occupation because of illness or injury for a period specified by the insurer without interruption. At the same time, you must be under the supervision of a Medical Practitioner and had the reasonable and usual treatments for your illness or injury.


You suffer a total and irrecoverable loss of your sight in both your eyes, the use of two limbs, or your sight in one eye and your use of one limb.


Total and Permanent Disablement (Any Occupation)

To receive a payment for Total and Permanent Disability under a Any Occupation definition, you would need to be unlikely to ever work again in any job that you are capable of doing due to your experience, your education or your training.

You also generally need to be earning less than 25% of your pre-injury / illness income to qualify.

The definitions for qualifying are similar to the Own Occupation definition above, with that key point of difference being whether you can work in your own occupation or in any occupation.


What is a Partial Benefit and a Full Benefit in TPD Insurance?

A full benefit is the total amount you are covered for. A partial benefit will pay you a portion of the benefit amount if you suffer from a partial disability. The specific definition will vary among insurance companies, although you may be covered if you lose one hand, one leg, or if you lose your hearing in one ear. If you make a partial TPD claim, the benefit payment will be deducted from your overall cover amount. A partial benefit may be an inbuilt or an add-on benefit depending on the insurance company.


How Much Does TPD Insurance Cost?

Different factors will determine the cost of your premiums. These include:

• Your age­ as you get older, the more expensive your TPD premiums become.

• The TPD benefit amount you chose ­ if you choose a higher benefit amount, your premiums will be higher as well.

• Extra benefits you have taken out ­ any add-on options you take out on top of the standard cover will add to your premium costs.

• Other factors examples are your medical history, whether or not you smoke, your lifestyle, and types of activities you engage in.

• Whether you choose a stepped or a level premium


Should I Get a Stepped or a Level Premium?

A stepped premium is where the premiums initially start as a lower price, and increase every year. Level premiums remain constant every year with the exception of increases in government taxes and other monthly fees.

Of the two, level premiums tend to be cheaper over the long term. So when taking out TPD insurance, determine how long you plan on holding the policy in order to see which option is more affordable in the long term. The difference between the two may be negligible if you are younger, but this will depend on your specific situation.


How Much Cover Do I Need?

When deciding on your cover amount, consider the following:

• Your life and private insurance cover ­ take into account your existing level of private insurance if you have this insurance, other forms of life insurance you have, and the cover you have through super.

• How much you earn ­ as TPD insurance may be able to replace your income, determine how much you need to cover for your regular expenses, including your household expenses.

• our outstanding debts ­ you may be able to use the benefit payment to repay your debts, so you should consider how you would pay off your debts if something was to happen to you and you weren't able to work.

• The cost of medical care ­ also determine how much your rehabilitation and nursing care expenses could cost you over the long run.

• The cost of making modifications to your property ­ these include things such as the construction of ramps and installation of railings around your home, in addition to any other changes that might be required.


How Can I Pay for My TPD Insurance?

You can pay for your TPD insurance either through your disposable income or through your super. Paying for it through your disposable income means you'll have less money to spend on other things. The key advantage is that Features and Benefits tend to be more comprehensive when funded using your disposable income instead of being funded through your super.

You won't lose any of your disposable income if you pay premiums through your super. However, payment of claims may be slower, and features and benefits might not be as comprehensive.

Speak to a SAVE U Professional Today.

Choosing a TPD insurance policy can be made quick and easy with the help of a Save U professional. We’ll provide you with all the information you need to make a decision, including the costs and specific features and benefits of each product of insurers we work with.
For more information, please fill in the form on this page, or call us on 1300 180 959.