Common Disability Insurance Exclusions

Total and Permanent Disability (TPD) Insurance is one of the most effective solutions for protecting yourself financially if you acquire a lifelong disability. Unfortunately, like other forms of life insurance, TPD insurance also features life insurance exclusions that may or may not apply to your case. Each insurer, however, will have their own policies and restrictions, so it’s best that you compare life insurance plans from different providers.

With that said, you’ll find the following to be among the most common Disability insurance exclusions:

 

Suicide or Self-harm


Like other forms of life insurance, any serious disability that was caused by an intentional act of self-harm will not be covered by TPD insurance. This also includes any permanent conditions or disabilities resulting from attempted suicides.

Some insurers, however, may waive the exclusion for suicide or suicide attempts after a certain period (typically after the first 13 months of your policy).

 

Certain Pre-existing Medical Conditions


When applying for TPD insurance, you’re required to disclose any known pre-existing medical conditions that you may have. And although not every condition will affect your cover for TPD insurance, some insurers may choose not to provide cover for disabilities related to your pre-existing condition.

An insurer, for example, may exclude any back injury from your policy because of a pre-existing back injury. But, like with other types of insurance, this depends entirely on your insurer and whatever pre-existing conditions you may have.

Some conditions are riskier and more problematic than others, and their inclusion as an insurable condition will depend on the level of risk your insurer is willing to take.

 

Special Occupational Risks


If you have an occupation that’s considered hazardous, then you may find certain benefits excluded from your TPD insurance plan. Exclusions for dangerous occupations are often done on a case-by-case basis, and it depends largely on the insurer’s guidelines and policies.

The more hazardous your job is (i.e. higher risk), the more limited your cover will likely be.

 

Any Injury or Disability Not Considered ‘Permanent’


TPD insurance primarily covers injuries and illnesses that result in permanent disability, so any injuries outside of that definition may not be covered, no matter how serious they may be.

This, however, depends on how your insurer defines a disability as ‘permanent’ and what conditions are categorised as a ‘serious disability’.

 

Always Check Policies and Definitions


Because TPD insurance is usually an add-on to an existing term life policy (although you can also get it as a stand-alone cover), it holds many of the same exclusions as other forms of life insurance. But as a specialised form of life insurance, TPD insurance can also feature specific exclusions and policy guidelines.

Remember that every insurer will have their own definitions and parameters for TPD life insurance exclusions. These are usually detailed in their Product Disclosure Statements (PDS), and it’s important to read and understand these terms and conditions before accepting your TPD insurance plan. You should also compare life insurance from different providers so that you know what your best options are.

If you need help finding the right TPD insurance for your needs and budget, please contact our team today. We’re the leading experts for life insurance comparison Australia wide, and we’ll do our best to assist you find the TPD cover that best suits your circumstances.

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