When we think about the best insurance options to protect our family’s financial future, the first policies that usually come to mind are income protection insurance or life Insurance. Life insurance comparison is vital for sound, financial planning but it’s not the only coverage you should consider when organizing your financial future. There is another vital insurance plan that should be seriously considered – Total and Permanent Disability (TPD) Insurance.
TPD Insurance is an insurance policy that is not often considered but it really can be a key piece of insurance to protect your financial future. In this post, we will share some of the top reasons why TPD insurance should be part of your life insurance comparison plan. Before we get into that, you may like to know exactly what TPD Insurance is.
What is TPD Insurance
Total and Permanent Disability Insurance, also known as TPD insurance, is a type of insurance that protects a person who suffers from a disability that renders them unable to return to the workforce. TPD insurance ensures you will be financially protected should you become permanently disabled and require extensive rehabilitation.
It is a very regrettable circumstance that none of us hope to find ourselves in, but you can have peace of mind knowing a TPD insurance policy is there to financially protect you and your family if and you may need it.
It sure is great to know that there is an insurance policy out there to cover permanent disability and there are lots of benefits TPD Insurance can provide you and your family with.
Lump Sum Payment
An important difference between TPD Insurance and Income Protection Insurance is that TPD insurance policies offer you a lump sum payment when you are deemed no longer able to ever work again due to a serious injury or illness. With income protection insurance you will receive monthly payments instead that will cease when your policy passes its benefit period or when you return to work.
A benefit period is a predetermined period of time that is agreed at the outset of the plan. So payments will have a specified end date where your payments will cease. With a lump sum payment, you will have the full amount of money up front to do with what you wish over a long period of time.
Financial Support
The lump sum you receive should you make a claim on your TPD Insurance policy can be used to cover a number of expenses. This policy will provide funds for clearing debts, medical costs and annual income streams to ensure you and your family are able to maintain the same quality of life.
Long Term Coverage
TPD insurance is designed to cover you if you are unable to return to work due to a permanent disability or illness. Income protection insurance, on the other hand, only provides you with a portion of your income if you are unable to work, temporarily, due to either a disablement or illness.
Therefore, with TPD Insurance, it is expected that the lump sum paid to you will provide more comprehensive coverage with enough money to be able to help you out for the long term.
Combine Policies
When you come to us for income protection and life insurance comparisons online, it is worthwhile considering comparing TPD insurance policies too so that you have comprehensive coverage. Furthermore, your TPD insurance can be linked to your life insurance and this is the most cost effective structure of arranging your insurances.
We also offer TPD plans as a standalone policy if you do not wish to purchase any additional insurance. At Cover Australia, we can help to tailor the best coverage for you and your family to suit your needs.
Own or Any Occupation
When comparing TPD insurance policies it is essential to consider the definition of the cover and which definition best suits you and your occupation. If you are working, you are eligible to take out cover under one of two definitions, “own occupation” or “any occupation”. If you are not working, you can still take out TPD insurance however your cover will come under a home duties or activities of daily living definition.
Own occupation will cover you if you are unable to ever work again in the occupation you were in immediately prior to the disability. Any occupation on the other hand will cover you if your disability means you will be unable to perform any occupation for which you are suited by training, education or experience.
The policy you choose will depend on your budget, occupation and lifestyle. Our team are happy to recommend the best policy for you and guide you through the selection process.
Let us help you Choose a TPD Insurance Plan
Selecting the right TPD coverage can be very complicated, we can simplify this process for you.
Everyone needs to consider their financial future and set real financial goals. Don’t just rush in to buying life insurance. Get the adviers at Cover Australia to give you an in-depth life insurance comparison. Trust your financial future with a reputable company such as Cover Australia and receive your tailored insurance solution today.
When you are researching insurance plans, be sure to educate yourself on the various differences between TPD insurance and Income Protection Insurance by speaking to one of our knowledgeable representatives.
Calling a respected insurance adviser such as the representatives at Cover Australia is imperative. Our advisers can help you decide what type of life insurance policies and rates are right for you. You also may want to consider life insurance for your entire family, not just yourself.
Extra expenses following a death or serious illness can put additional pressures on a mourning family.
Many other comparison companies offer TPD insurance plans, but few can bring the expertise to the table like Cover Australia. Trust us to take care of the life insurance comparison process to protect your family’s financial future.