Hearing Loss. Mental Health Disorder. Injured Back.
These are just some of the common disabilities covered by a total and permanent disability (TPD) insurance policy. TPD insurance is designed to lessen the financial burden if you are injured or suffer from an illness that leaves you totally and permanently disabled.
Along with everyday financial commitments, you may also need ongoing medical care and/or permanent lifestyle adjustments to assist with your quality of life. Being able to focus on you and not your finances makes this insurance a smart investment.
A TPD policy is designed for working Australians who, due to total and permanent disability, are unable to continue working. What is defined as totally and permanently disabled varies greatly between insurance companies and products. Most providers will allow you the option to select between ‘own occupation’ or ‘any occupation’.
The definitions of ‘own’ and ‘any’ occupation vary between insurers. And understanding how this relates to you is vitally important as it could be the difference between a successful claim or not.
If a surgeon was to injure her hands she may receive a payout under an ‘own occupation’ policy. However, if her hand injury allowed her to work in some other capacity, she might not receive a payment under an ‘any occupation’ policy.
If a labourer severely injured his knee or back, he might receive a payment under ‘own occupation’ but not ‘any occupation’ as he might be able to use some of his experience and training in a less strenuous position within the same industry or a different line of work altogether.
Being out of work for a period of time before recovery is not considered a total and permanent disability with most insurance providers and is more suitable for an income protection claim.
If the unthinkable was to occur, you want to ensure that you and your family are protected and your insurance cover is enough to help you with the financial pressures and lifestyle changes.
We recommend you speak directly with a Ricarmo Financial Group insurance specialist. Not only can they offer you a personalised solution, in many cases they can have your insurance premiums taken directly from your superannuation fund.