Total and Permanent Disability Insurance

Have you ever thought what would happen to you if you became permanently and totally disabled? Would you be able to meet your financial and family commitments and maintain the quality of life you and your loved ones currently enjoy?

If something tragic such as permanent and total disablement occurs to you the cost of living does not disappear and in fact would most likely increase as a result of having to pay for expensive rehabilitation treatment and other necessities that have resulted from your injury. In the event that you do become totally and permanently disabled a total and permanent disability insurance cover will ensure that you are paid out a lump sum of money in line with your TPD policy.

Total Permanent Disability (TPD) is a phrase used in the insurance industry and in law. Generally speaking, it means that because of a sickness or injury, a person is unable to work in their own or any occupation for which they are suited by training, education, or experience. An individual or group of individuals can insure themselves against it, often as part of a life insurance package, or as worker's compensation, or separately.

Definitions of permanent disability

A permanent disability is one that will remain with a person throughout his or her lifetime, or he or she will not recover, or that in all possibility, will continue indefinitely. Insurance companies often have slightly different definitions of what determines permanent disability. However typical definitions would include:

  • Loss of two of eyes, arms or legs.
  • Absence from work for six months due to an accident or illness, without expectation of returning to work.


TPD differs from income protection insurance in that the insured person must be permanently disabled for the insurer to pay out, rather than absent from work for an extended period of time.

If you have loved ones that depend on you for income and you require an income to service your debts, insure yourself against total and permanent disability by comparing policies online here at Rate Detective and enquire to have one of our insurance professionals contact you to discuss your requirements further. And if you apply through Rate Detective you will receive 20% cash back for your first year's insurance premiums!

Get your quotes now

What to find out more? Enquire now

Published on March 3-th, 2008 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.
Enquire about TPD Insurance

Important Information

Not all providers in the market are included in the comparison.

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.