What is TPD insurance?

TPD, or Total and Permanent Disability, insurance is a type of insurance policy that provides financial protection in the event that an individual becomes permanently disabled and is unable to work. This type of insurance is designed to provide a financial safety net for individuals and their families in the event that they are unable to earn an income due to a severe disability. 

What types of TPD are there?

There are several different types of TPD insurance policies available, each of which offers different levels of coverage and protection. Some TPD policies are standalone policies, which means that they provide coverage only for TPD. Other TPD policies may be bundled with other types of insurance, such as life insurance or income protection insurance, to provide more comprehensive protection. 

TPD insurance is typically available to individuals who are working and earning an income, but it is also available to those who are self-employed or retired. In general, TPD insurance is suitable for anyone who is concerned about their ability to earn an income in the event of a severe disability that prevents them from working. 

The definition of “permanent disability” can vary from one TPD policy to another, but generally it refers to an injury or illness that is expected to prevent an individual from ever returning to their previous occupation. In some cases, a TPD policy may also provide coverage for partial disability, which means that the individual is able to work but is unable to perform the same tasks or work at the same level as before their disability. 

What’s the purpose of TPD insurance?

TPD insurance can provide a range of benefits to individuals who become permanently disabled. These benefits may include a lump sum payment, which can be used to pay for medical expenses, make home modifications, or cover other living expenses. Some TPD policies may also provide ongoing income support to individuals who are unable to work due to their disability. 

To be eligible for TPD insurance, individuals typically need to meet certain requirements, such as being between the ages of 18 and 65 and being in good health. Some TPD policies may also require individuals to be working a certain number of hours per week or to meet other specific eligibility criteria. 

It is important to carefully review the terms and conditions of a TPD policy before purchasing it, as there can be significant differences in the coverage and benefits offered by different policies. It is also important to be aware of any exclusions or limitations that may apply to a TPD policy, as these can affect an individual’s ability to make a claim. 

In addition to purchasing a TPD insurance policy, there are other steps that individuals can take to protect themselves and their families in the event of a permanent disability. These may include saving money for emergencies, building up an emergency fund, and creating a financial plan to ensure that household expenses can be met in the event of a disability. 

Overall, TPD insurance can provide valuable financial protection for individuals and their families in the event of a permanent disability. By carefully considering their needs and the available options, individuals can choose a policy that provides the right level of protection for their specific circumstances. 

Do I have TPD insurance?

Chances are if you are a member of an Australian superannuation fund you will have TPD insurance by default. 

Having TPD insurance inside your superannuation can be a convenient and cost-effective way to protect yourself and your loved ones in the event of a permanent disability. When you have TPD insurance inside your superannuation, the premiums for the policy are paid using your superannuation funds, which can be a tax-effective way to fund your TPD coverage.  

Additionally, having TPD insurance inside your superannuation may be more affordable compared to purchasing a standalone TPD policy, as the premiums may be lower due to the bulk buying power of the superannuation fund. It is important to carefully review the terms and conditions of any TPD policy inside your superannuation, and to ensure that it meets your needs and the needs of your loved ones. 

How do I claim TPD insurance?

Know your rights. 

If you are yet to make a TPD claim, you are entitled to legal representation and Littles can help you. 

If you have already lodged a claim and it has been rejected by a superannuation fund or insurer, you may be entitled to have the decision reviewed through an internal resolution procedure. 

If your complaint has been upheld, you may be able to litigate in a court or lodge a complaint with the Australian Financial Complaints Authority (AFCA). 

There are strict time limits to challenge an insurer’s decision, so it’s important you seek legal advice as soon as possible. 

What is the Littles difference?

Put simply, Littles are experts in superannuation and insurance law matters. 

Our insurance team has helped thousands of consumers claim their entitlements, and our Head of TPD and General Insurance has extensive industry knowledge and insight on how to maximise your prospects of success. 

We also speak your language, at sixteen languages and counting.  Forget paying for a translator or for a lawyer who doesn’t understand you and your cultural background. 

All our superannuation and insurance law matters are conducted on a no win, no fee basis, and we don’t charge you upfront for any disbursements necessary to prosecute your claim.  

If you would like superannuation and insurance law advice, reach out to Littles today by using our free Claim Checker. 

About the author

Littles’ Head of TPD and General Insurance, Rowan McDonald, is an expert in insurance and superannuation law.  Rowan is an experienced litigator and has prosecuted thousands of successful insurance claims for consumers. 

Having worked in the insurance industry for over fifteen years, Rowan has an extensive industry contact list and regularly presents to disability support groups, financial industry professionals and multicultural organisations. 

Rowan has also advised some of Australia’s top insurers, giving him unrivalled insight into the claim process from all perspectives.  Rowan takes a pragmatic and common-sense approach to the advice he provides his clients. 

For your free, personal consultation get in touch with Rowan today.  

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