Do I Need TPD Insurance?

Do you ever worry about the impact on you and your family if you suffered a permanent disability? If so, you may wonder, “Do I need TPD insurance?”. When you compare TPD insurance, it may be overwhelming at first, but once you have a better understanding of this type of insurance, you’ll be in the best position possible to make an informed decision. If you’re unsure whether this is a worthwhile investment, read on to find out more about TPD insurance and whether it’s the right type of cover for you and your family.  

What is TPD Insurance?

Total and Permanent Disability (TPD) insurance provides protection if you were to become completely disabled due to sickness or injury and that injury meant you were unable to work. The benefit is paid in a lump sum to the policyholder and their family.

A range of disabilities and conditions are covered under TPD insurance such as heart attacks, strokes, cancer, accidents, mental illness as well as musculoskeletal, nervous system and sense organs diseases. TPD insurance can be purchased as a standalone policy however it’s more commonly combined with a life insurance policy to provide more comprehensive cover.  

What Will TPD Insurance Cover Me For?

TPD insurance can offer cover in two scenarios depending on the policy you purchase. TPD insurance can cover you if:

  • You can’t work again in any occupation.
  • You’re unable to continue working in your own occupation.
When choosing a policy, make sure to check which of these two options the policy falls under to confirm how comprehensive the cover is.  

Am I Already Covered?

Before you compare TPD insurance, first consider your current level of private health insurance and other types of life insurance you may already have, including cover available through your super fund.

Workers compensation and government benefits should be factored in also. You may find out that you already have enough cover for disability. But just because you have access to disability cover in these areas, that doesn’t necessarily mean you have enough. If your current cover doesn’t cut it, it’s worth taking out TPD insurance to make sure you’re fully protected.  

What Financial Costs and Savings Do I Need to Consider?

Take the time to figure out how much you and your family would realistically need to get by. Consider your day-to-day living expenses, debts, mortgage, future financial commitments and medical costs that will need to be paid for when you no longer have an income. You will also want to include any current savings and assets you may have that could cover these costs into your calculations

By getting a complete bird’s-eye view of your costs and savings, you will have a better idea of how much cover you will need.  

How Can TPD Insurance Effect My Quality of Life?

The financial costs of living day to day also directly impacts your quality of life. Do you have a family who relies on you to provide for them? If so, it could be hard for them to maintain the same quality of life if you were to become disabled and were unable to work.

If you have financial obligations but no dependents relying on you to pay the bills, consider the impact on your own quality of life if you were to become disabled or experience trauma or critical illness and were unable to work. TPD insurance can help ensure you are looked after financially during your recovery. Without the financial security of TPD insurance to get you the cover you need, it will be very hard to pay the day-to-day bills and have enough money to maintain your current standard of living.  

How Much Does TPD Insurance Cost?

The cost of TPD insurance varies depending on a number of factors.

The older you are when taking out TPD insurance, the higher the premium is likely to be. The premium also varies depending on whether you have a professional, white collar, light manual or blue collar occupation. Blue collar workers do tend to pay a higher premium because their work leaves them at greater risk of getting hurt. To find out exactly how much TPD insurance will cost you, visit our Get a Quote page and fill in your details to compare TPD insurance and receive accurate quotes from multiple insurance providers.  

How Much TPD Insurance Cover Will I Need?

The answer to this question largely depends on what stage of life you are in. Consider your current income, assets and debts to work out how much money would be needed to support yourself and your family if you can no longer work.

When considering how much TPD insurance cover you need, remember to also factor in the cost of ongoing care. Some of the costs TPD insurance can help cover include:
  • Mortgage payments / rent
  • Personal debt
  • Living expenses
  • Children’s education
  • Medical expenses
  • Rehabilitation and professional nursing care
  • Home modifications such as ramps and handrails etc.

Compare TPD Insurance with Cover Australia

Still asking “Do I need TPD insurance?”. If you’re looking for more advice about whether TPD insurance is the right policy choice for you, call us today on 1300 366 817 to speak with an experienced and friendly adviser.

Once you’re ready to purchase a policy, compare TPD insurance through Cover Australia to make sure you’re getting the best policy at a price you can afford. Just click ‘Get a Quote’ to receive instant TPD insurance quotes from leading Australian insurers direct from Cover Australia. Alternatively, if you need to make a TPD claim and you are finding it difficult, get in touch with our TPD claims experts.

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