The Basics of Total and Permanent Disability Insurance

We all work to provide for our basic needs and that of the people who depend on us. But what if one day you're robbed of your ability to work due to an illness or injury? Where would you now get the money to buy even the most basic necessities of your household? How will you pay your bills and your other financial obligations?

These are tough questions to answer, we know. And most of us would rather avoid thinking about them and hope for the best in our lives. However, it still pays to be prepared for instances such as illnesses and injuries, since they might cause an immense financial burden to your household. That is where Total and Permanent Disability (TPD) Insurance comes in.

What TPD Insurance Is

As the name suggests, TPD insurance provides coverage to the insured in case of total and permanent disability that prevents him or her from earning income. Different insurance companies, however, vary in their definition of what TPD is, although it generally covers the loss of a pair of limbs and the eyes. Thus, if you're taking out this type of insurance, always make sure to have the insurer outline exactly the conditions that they are willing to cover.

How It Works

You can take out TPD Insurance as a standalone insurance or as a part of a life insurance policy. As with other types of policies, the higher the premiums, the more extensive the coverage you can get. So remember to take the best policy you can afford and make sure that it provides you with adequate coverage.

If and when you do meet an accident that renders you totally and permanently disabled, then your insurer will give you a lump sum payment. You can then use the money to cover your medical bills, therapy, and even your daily expenses. Take note that TPD insurance is different from income protection insurance as the latter provides you with monthly compensation in place of your income.

Choosing Your TPD Insurance

Here at Rate Detective, our professional advisors are ready to help you to choose TPD insurance for yourself. Contact us today for more details!

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Published on February 2-th, 2013 in TPD Insurance
Damon Rasheed is the CEO of Rate Detective, an Australian financial service comparison sites specialising in Life Insurance, Income Protection Insurance and home loans. Damon holds a Master's Degree in Economics from the University of Melbourne and has been involved in many start-up internet businesses.
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Important Information

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Any information or advice contained on this website is general in nature and has been prepared without taking into account your objectives, financial situation or needs.