Total and Permanent Disablement (TPD) Insurance

This cover provides payment of the sum insured should you become totally incapacitated through injury or illness, and the policy’s definition of TPD is satisfied. The main condition of TPD insurance is that the insured is unable to return to work. If you suffer a critical illness and unlikely to ever return to work, then TPD insurance is required to meet additional medical and rehabilitation expenses and to assist in paying off outstanding debts.

TPD insurance is usually sold as a 'rider' (additional benefit) in addition to a term insurance policy.

Generally there are three TPD occupational definitions available from which to select cover:

	Standard - unable to perform the duties of any occupation for which you are reasonably suited by reason of education, training or experience.
	Own Occupation - unable to perform the duties of their own occupation (generally available to certain white collar professional lives only and incur a 50% loading on premiums).
	Homemaker - unable to perform full time unpaid domestic duties.

In addition most TPD policies will also offer a 'Loss of limbs and/or sight' disablement definition. Under this definition the life insured is entitled to a TPD benefit if they suffer one of the following:

	permanent loss of use of both arms; or
	permanent loss of use of both legs; or
	permanent and total loss of sight in both eyes; or
	a combined loss of one limb and sight in one eye

TPD cover normally ceases at age 65 but many insurers are now extending cover beyond this age, where the benefit is paid when the insured is totally and irreversibly unable to perform a specified number of 'activities of daily living' such as:

	bathing and showering
	dressing and undressing
	eating and drinking
	using a toilet to maintain personal hygiene
	moving from place to place by walking, wheelchair, or with assistance of a walking aid.

Harlocks can quote from all leading Life Insurance Companies. Our advice is based on the most suitable policy for your needs, while allowing you flexibility to choose a policy to accommodate your financial position. When quoting we provide a full Statement of Advice (SoA) which provides a comparison between companies, policies, definitions and premium cost. This allows our clients to make an informed decision based on our advice, while ensuring that the policy best suits their needs.

For more information or a quote on this product please contact us.