What Will TPD Insurance Cover Me For?

The operative words here are ‘total and permanent disability’, which insurers will have varying definitions of. Despite the differences in how insurers define this term, they do agree on one thing: the inability to return to work or maintain a normal, daily lifestyle.

Bearing this in mind, TPD insurance can cover a variety of conditions that could leave you disabled to the point of permanent unemployment or the inability to live life normally like a healthy individual. Some of the conditions often covered by TPD insurance include:

• Hearing loss
• Speech impediment
• Blindness
• Loss of limb function
• Mental health disorders

It’s important to remember that not every case of these conditions may qualify for TPD insurance cover. Your eligibility for cover will depend largely on how your insurer defines ‘total and permanent disability’, their policies, and your circumstances.

What are the Main Types of TPD Insurance?

There are two main forms that TPD insurance takes (policy definitions vary between products and insurers which is why it is crucial to read the Product Disclosure Statement):

1.    Any Occupation – Generally, this type of TPD insurance covers any permanent disability that prevents you from working in any occupation for which you are suited by way of education, training or experience.

2.    Own Occupation – This TPD insurance covers disabilities that prevent you from ever working in the occupation that you held before becoming disabled. This insurance is job or industry-specific, and it only provides benefits if you’re unable to ever return to your previous occupation because of your permanent disability.

Are There Any Exclusions?

Yes. Like other types of life insurance, TPD insurance excludes disabilities that are caused by certain medical conditions or circumstances. Each insurer will have their own policy exclusions, so it’s important to read your insurer’s Product Disclosure Statement and compare them with those from other companies.

Some of the most common exclusions include:

Suicide or Self-Harm – Any permanent disability caused by a suicide attempt or an intentional act of self-harm will not be covered by TPD insurance. This is perhaps the one exclusion that every insurer will have for their TPD insurance policies. With that said, some insurers will waive this exclusion after a certain period after signing up.

Certain Pre-existing Medical Conditions – Although many pre-existing conditions are normally covered by TPD insurance, there are some that insurers may not cover. This normally includes conditions that are known to be problematic or to cause a variety of health issues. These exclusions will differ between insurers, and it largely depends on their policies and the level of risk they’re willing to take.

Occupational Risks – If you work in an occupation that’s considered ‘high-risk’, then your policies may exclude some disabilities caused by your job. Guidelines for this exclusion will vary between insurers, and insurers will often only implement this exclusion on a case-by-case basis. In general, the more hazardous your occupation, the more limitations and exclusions your cover may have.

Disabilities Not Considered ‘Permanent’ – No matter how serious or debilitating your disability may be, it will likely be excluded from TPD insurance if it doesn’t satisfy your insurer’s definition of ‘total and permanent disability’.

TPD claims can be incredibly complex and time consuming. If you find that you need to make a claim and are having trouble, speak to a TPD Claims expert.

Need More Information?

If you want to find out more about TPD insurance, simply contact us to learn more. We can help you make a TPD life insurance comparison from different providers to help you assess your options. You can even get a quote or use our life insurance calculator to get an estimate of how much your policy will cost based on your circumstances.