Receive TPD cover if you are no longer able to perform domestic duties.
Total and permanent disablement insurance, provides a lump sum benefit payment if you become totally and permanently disabled and are unable to work. This type of cover is designed to help cover your mortgage repayments, pay for medical expenses resulting from your injury and provide ongoing financial support for your family. There are a number of different definitions of TPD Insurance to choose from when comparing policy options that offer different levels of cover.
One definition of TPD Insurance is Home Duties. This cover is designed specifically for homemakers, and offers cover for people who perform unpaid domestic duties in a full-time capacity. If the insured person is permanently unable to perform their home duties due to illness or injury, a lump sum benefit will be paid.
What is TPD Insurance for home duties?
Home duties insurance is designed to cover the loss of those who engage in domestic duties or child rearing full-time. If the insured homemaker becomes disabled and is unable to perform their regular duties, leave home unaided or engage in any employment, a lump sum benefit will be paid.
Why should someone who performs Home Duties consider TPD insurance?
The loss of a homemaker would undoubtedly have a significant impact on the family home, especially when you consider just how much work goes into keeping things running smoothly around the house.
Is there a waiting period before payout?
Home duties claims may require the insured person to be unable to perform their duties for a period of at least 3-6 months to be deemed unlikely to be able to return to their regular duties ever again. Some insurers will even extend this definition to include that the person insured will need to require ongoing medical care.
What is recognised as Home Duties?
However, home duties TPD insurance gets a little more complex when it comes to the different definitions of home duties used by different providers. Included domestic duties vary from one policy to the next but will typically include some or all of the following:
- Cooking family meals
- Cleaning the home
- Doing the laundry
- Taking care of children or other dependents, including bathing, dressing and counselling
- Doing the family grocery shopping
- Changing bed linen
- Caring for family members when they are ill
- Minor repairs and general maintenance around the home
- Walking, feeding, washing and generally caring for the family pet
- Organising transport for family members
Read the PDS closely and seek expert advice from an insurance consultant to ensure you understand what is and isn’t included in the home duties definition of your chosen TPD insurance policy.
What are the different types of TPD Insurance Available?
There are five different types of TPD insurance cover available to applicants:
- Any Occupation. This definition means you are eligible for cover if your disability means you are unable to work in any job you are reasonably qualified or experienced to perform, and you never expect to be able to return to the workforce. Premiums under this definition are cheaper than under the Own Occupation definition below, but it only provides a narrow range of cover.
- Own Occupation. This means you’ll be paid a benefit if your disability prevents you from returning to work in your own occupation. This is a more comprehensive type of cover and means you can receive a benefit even if you’re able to work in a different occupation.
- Home Duties. As mentioned above, if you’re unable to perform your normal domestic duties, you’ll receive a lump sum benefit. This definition applies to homemakers and is designed to help with things like cooking and cleaning, maintenance of the family home and looking after dependent children.
- Activities of daily living. Under this definition, you’ll receive a benefit payment if you are unable to perform at least two activities of daily living, such as bathing, dressing, eating, using a toilet, getting in and out of bed and moving freely unaided.
- Loss of independent existence. If you cannot perform a certain number of activities of daily living, or if you have suffered a cognitive impairment (for example memory loss), you will be eligible for a benefit payment.
What are some reasons to consider Home Duties TPD?
- According to the Australian Bureau of Statistics, in 2009 around 1.1 million people reported their main activity as home duties. A whole range of roles come under the banner of home duties, but these are generally associated with the maintenance of the home and the care of the family.
- If a homemaker is unable to perform their regular domestic duties due to disability, the cost to replace them can be substantial. They couldn’t simply stop having those many roles performed, as the list of home duties offered above demonstrates just how crucial homemakers can be.
- You could have another family member perform some of the homemaker’s roles, but that may not be practical. Other family members will probably already have their own set of duties to perform, and may then have an increased workload as they provide care for the disabled person.