Every day we see stories of people who have triumphed over adversities, and it is always heart-warming to see these people overcome difficult hurdles in their lives.
It is easy to sympathise with their stories, but at the back of your mind you wonder if that could ever happen to you – if you were faced with the same adversities, could you overcome those obstacles and hurdles and also achieve a positive outcome? Would you have the support in place to help you back up on your feet and provide you with assistance to jump over those hurdles easily?
From a financial perspective, many Australians purchase life and disability insurance to provide them with the financial support they need to help overcome hurdles when an adversity strikes.
In this article we will share with you the benefits of having insurance to support you in times of need and specifically how disability insurance is a great choice to consider.
Insurance Options
life insurance, which helps you to insure your life in case any incident occurs. In Australia income insurance is another popular insurance solution to provide you with assistance. Income protection entitles people to a replacement salary in case they cannot work because of an injury or an illness. Similarly, a trauma insurance policy entitles the insured to a lump sum payment, in case the insured suffers a critical illness like cancer, stroke, heart attack, etc.
People usually purchase the first two as a matter of choice. In some cases, they purchase trauma insurance depending on the likelihood of contracting a critical illness. However, not many show the same foresight when it comes to purchasing Total and Permanent Disability Insurance (TPD). TPD insurance is a valuable option to consider when planning to protect yourself and your family from any potential circumstances that could result in personal injury.
Entitlements when Purchasing Disability Insurance
Purchasing TPD insurance will provide you with peace of mind knowing that you have cover for the risk of living life with a permanent disability. When you are covered by a TPD insurance policy, life insurance companies would pay you a lump sum benefit if you suffer a disability because of an illness or an accident and medical experts declare that you would not be able to ever return to work.
Living life with a disability is bad enough. However, the realisation that you would not be able to earn your livelihood thereafter, exacerbates the situation further. In situations like this, any financial help becomes a godsend. With the money that you obtain from your insurer, you could:
- Pay off any debts or loans, alieving your financial stress
- Pay for home care expenses, should you require additional medical care once you leave the hospital
- Pay for making alterations to your house, vehicle etc.
- Use this money as your source of income at a time when you’re unable to earn your livelihood
TPD Insurance Options and Information
When you purchase TPD insurance, you have the option to purchase TPD cover as an additional feature of your existing term life insurance policy. Alternatively, you could procure it as a standalone policy too. However, opting for the former has a disadvantage. If you file a claim on your TPD (which is a part of your life insurance policy), then you lose your death cover benefits too. In addition, you can only file a TPD claim once.
When you file a claim under your disability insurance policy, the insurer determines your benefit payable based on the severity of your disability and the cover you applied for. Usually insurance companies pay no benefits for partial or temporary disabilities.
Most TPD insurers provide disability insurance under two definitions. These include:
- Any Occupation: This defines your inability to perform any kind of job that you are suited to by previously education, training or experience.
- Own Occupation: This defines your inability to perform the job for which you were educated, trained and gained experience from.
It is also possible to have “any occupation” TPD cover under your superannuation fund. However this needs to be carefully structured so it is important to discuss this in detail with your Cover Australia adviser.
Things to Consider Before Determining whether You Need TPD Insurance
Do you have a sufficient level of savings to cover any medical expenses if you become ill or injured? Are you currently paying for any outstanding debts?
If your savings are low and you have considerable debts outstanding, it would be wise to consider purchasing TPD Insurance. This insurance can help you and your family out significantly in times of need.
All of these options and considerations can be discussed in full with one of our Cover Australia advisors. We are here to help ensure you receive the very best cover to suit your needs and assist you in triumphing over adversity if faced with a disability.
Cover Australia – The Leading Provider of Insurance Solutions in Australia
If you want to buy total and permanent disability insurance, life insurance or compare income protection insurance quotes, you can depend on the experts. For over 30 years, Cover Australia has been a leading provider of insurance products and solutions in Australia.
Our insurance advisers offer guidance on all matters of insurance. These could range from income protection insurance to steps for purchasing life insurance online.
Give us a call us today at 1300 366 817 and obtain peace of mind along with an insurance solution that meets your requirements perfectly.