How much TPD Insurance do I need?

TPD Insurance is one of the most important covers you can have, primarily if you work in a high-risk occupation or deal with heavy, life-threatening machinery. Let’s take a quick look at everything you need to know about this highly-convenient insurance cover.

What is TPD Insurance?

TPD stands for total and permanent disability and is a cover that pays you a lump sum in the event of total or permanent disability. The definition of TPD varies from one life insurance company to another, meaning you must go through the terms before agreeing to receive a specific level of cover from one insurer.

How much TPD Insurance do I Need?

The amount of TPD cover depends on your financial situation. While your income protection policy will take care of your continuous earnings once disabled, your TPD claim will help you tackle medical needs and other debts that you might be unable to settle because of the disability.

Your TPD policy can provide a lump sum to help you cater for immediate and follow up medical costs. A TPD cover can also pay off your personal debts that you were committed to repaying before the injury, and it can also help offset your mortgage payments. 

TPD insurance acts as your super fund that helps you to take care of costs such as home renovations to allow for increased mobility by making your house wheelchair accessible through ramps and other modifications.

Other Considerations

Always check the definition of TPD from your preferred insurance agency as the description normally differs. Make sure you understand what the policy caters for and the limits. Having such an understanding will help to avoid complications in the event of disability

It would be best if you also considered purchasing TPD as part of a life insurance cover as opposed to buying it as a stand-alone product. Combining it with a life cover will be more cost-effective in the long run.

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Greg Maguire

Greg Maguire

Greg is an experienced Insurance Broker in Perth, WA, with an Advanced Diploma of Financial Planning from Deakin University and a Bachelors Degree from Edith Cowan University. He is a member of the Chamber of Commerce & Industry WA and Baldivis Rotary, as well as Vice President of the local high school's Parents & Citizens Association. Greg provides personalised and dedicated services to his clients that bigger firms are unable to match.