How much TPD insurance should I have?

Total and Permanent Disablement is a form of insurance cover that offers protection for people that become completely disabled and are unable to work. The benefit paid is in the form of a lump sum. It can go to the policyholder and their family to offer support as they are unable to work to their full capacity.

Definitions of Total and Permanent Disablement can vary between providers so it is essential to be clear on what definition your policy falls under.

Enquire to get a clear TPD estimate for your situation

So how much TPD insurance do I need?

As with Life Cover, determining how much TPD cover to take out requires a close assessment of your personal financial situation and how your life could be affected in the event of becoming totally and permanently disabled. A key step in this process is actually writing down or creating a spreadsheet of all of your current financial obligations and consider what costs may be incurred if your income stream were removed. There are self-assessment calculators available online that can assist with this process.

Nine expenses TPD can help cover

• Mortgage/rental repayments
• Personal debt i.e. credit card debt, car loan, personal loans
• Day-to-day living expenses
• Children's education
• Groceries
• Rehabilitation
• Professional nursing care
• Necessary modifications to home (addition of ramps, lift access, hand rails etc)
• Medical care

But I already have Life Cover, should I still consider TPD insurance cover?

While life cover can provide support in the event of the policyholders death or diagnosis of a terminal illness, what if the policyholder is to become disabled and not die? The impacts of suffering total disablement and not being able to work again can be truly devastating. TPD can help the insured keep on top of their current debt, living expenses into the future and any rehabilitation and ongoing treatment that they might require, the costs of which can easily run into the hundreds of thousands if not millions of dollars.

Not having this cover in place can cause great financial strain on their surrounding family members and others close to them.

Different definitions of Total and Permanent Disablement

TPD policies generally come under two definitions. These are “own occupation” and “any occupation”.

Own Occupation: Benefit is payable if a certified doctor deems that it is unlikely for the policyholder to ever return to the occupation in their field.

Any Occupation: Benefit payable if policyholder is unable to perform the duties of their regular occupation and is unable to work in any other occupation that they may be suited to by education, training or further experience.

Can I purchase TPD Insurance through life cover?

Many life insurance companies now offer TPD feature within Life Cover policies. It is important for applicants to review the product disclosure statement before application to determine whether a life cover benefit will be paid if there has already been a claim for TPD. In some instances the benefit will not be paid or the policy will be cancelled.

To work around this many policies will offer a buy-back feature that reinstates the life cover that has been removed from the sum insured as the result of a TPD claim.

As an example if you had $500,000 worth of life cover and $250,000 in TPD if a claim is made the life cover sum-insured would reduce to $250,000 in a linked policy. A buy-back feature will “top-up” this amount to $500,000 after 12 months of the claim being made.

The benefit of bundling the two cover types together is that it can be more cost effective when it comes to paying premiums and also makes management of the two policies easier.

Compare TPD insurance

Full Name*Please enter your full name

Email*Please enter a valid email address

Phone*

why?

It's important to give us a valid phone number

State*ACTNSWNTQLDSATASVICWA

Gender

Male Female

Smoker

No Yes

Date of Birth

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990 1989 1988 1987 1986 1985 1984 1983 1982 1981 1980 1979 1978 1977 1976 1975 1974 1973 1972 1971 1970 1969 1968 1967 1966 1965 1964 1963 1962 1961 1960 1959 1958 1957 1956 1955 1954 1953 1952 1951 1950 1949 1948 1947 1946 1945 1944 1943 1942 1941 1940 1939 1938 1937 1936 1935 1934 1933 1932 1931 1930 1929 1928 1927 1926 1925 1924 1923 1922 1921 1920 1919 1918 1917 1916 1915 1914 1913 1912 1911 1910 1909 1908 1907 1906 1905 1904 1903 1902 1901 1900

Type of Protection Life Insurance Income Protection

Current Income This is your current income. Everyone‘s situation is different so you might also want to discuss with an insurance consultant. Calculator $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 $110,000 $120,000 $130,000 $140,000 $150,000 $160,000 $170,000 $180,000 $190,000 $200,000 $200,000 +

Occupation* Please enter your occupation

Self Employed No Yes

Level of Protection Coverage is the amount of money that you will be paid in the event of a claim. An insurance consultant can help you determine an appropriate amount. Calculator Unsure None $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 $1,000,000 $1,100,000 $1,200,000 $1,300,000 $1,400,000 $1,500,000 $1,500,000 +

TPD Cover Provides a lump sum payment if you become totally and permanently disabled and are unable to return to work. Unsure $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 $1,000,000 $1,250,000 $1,500,000 $1,750,000 $2,000,000

Trauma Cover Provides a lump sum payment if you suffer a serious medical condition. Cover can be taken out for 40-60 medical conditions depending on the policy you choose. Unsure $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 $1,000,000 $1,250,000 $1,500,000 $1,750,000 $2,000,000

Sign up to our money newsletter

By submitting this form, you agree to the finder.com.au privacy policy

Get quotes

×

Edit your details

Did you submit incorrect details? Not to worry, you can edit them below.

Full Name* Please enter your full name

Phone* It's important to give us a valid phone number

Email* Please enter a valid email address

Update my details

By submitting this form, you agree to the finder.com.au privacy policy

Compare TPD insurance quotes from these direct brands

Sort by:

Name	Product	Maximum Cover	Minimum Sum Insured	Maximum Entry Age	Expiry Age	Stand Alone or Add on	hide
NobleOak TPD Insurance		$5,000,000	Not Stated	64	75	Add on		Get fully underwritten Total and Permanent Disability Insurance that can be customised to fit your occupational situation and financial circumstances.	Get Quote More Info	Compare	loading Fetching your data...
Real TPD Insurance		$1,000,000	500,000	59	65	Add on		Get a quote for up to $1 million in TPD cover.	Get Quote More Info	Compare	loading Fetching your data...
Guardian TPD Insurance		$1,000,000	$50,000	59	Not Stated	Add on		Get a quote for up to $1 million in TPD cover.	Get Quote More Info	Compare	loading Fetching your data...

loading

Compare up to 4 providers

Clear selection

Compare

What's next?

• Find TPD policies from Australian insurance providers
• Learn more about what TPD insurance covers