Life Insurance Blog

What is Total and Permanent Disability (TPD) Insurance?


Total & Permanent Disability (TPD) Insurance provides a lump sum payment if you become totally & permanently disabled due to an unexpected accident or illness.

According to an Australian Bureau of Statistics 2010 report on disability, 1 in 5 Australian’s aged between 15 and 65 suffer from a profound or severe disability.

What stops if you stop?

Unfortunately, when an accident or illness takes away  your ability to earn an income, it does NOT also remove your financial responsibilities.

  • You still have most, if not all, your existing expenses
  • You may incur additional expenses due to your disability
  • You still need to plan for your retirement years
  • You may want to alleviate debt to reduce financial stress

The lump sum benefit you receive from a Total and Permanent Disability policy helps prevent financial hardship being caused during a time that will already be difficult enough.

Are all TPD policies the same?

There are a number of variables associated with TPD and the process of selecting the right type and level of cover, can be quite complex. Considerations include:

  1. Which definition of “Total and Permanently Disabled” should you choose?
  2. Should you have a stand alone TPD policy or include it as an option of a Life Insurance policy?
  3. Should you put part or all of it inside Superannuation?
  4. What is the waiting period before you can make a TPD claim?

Decisions such as these can make a big difference in your ability to make a claim and get the benefit you expect in a timely fashion.

If you’d like assistance matching a Disability Insurance solution to your unique needs, contact us today and one of our Risk Protection specialists will be glad to help.


Stephen Handley
Stephen Handley
My name is Stephen Handley. I have over 20 years experience in IT, Project Management and Financial Services. By combining this experience, I hope to make it easier for Australians to find good quality and affordable life insurance. Furthermore, I am not connected to any life insurance company. So, in the unfortunate event of a claim, you'll have someone in your corner, representing your interests.