TPD insurance – What is it and why do you need it?
Majority of us hold TPD insurance in super funds but do you know what TPD is exactly and why you should need it? TPD is an insurance acronym which means Totally and Permanently Disabled and this is why TPD insurance is that form of life insurance which insures the policyholder against all forms of injury and sickness when he is not able to work in his own occupation. In case the insurance company is satiated that the TPD claim still exists, then the lump sum payment will be given to the insured. To know more about what TPD is and how you should get hold of this kind of insurance, there are few things you should know about this form of insurance.
Definitions of TPD insurance
Just as any other insurance policy, this one carries a list of terms and conditions. As long as total and permanent disability insurance is concerned, there are several levels of coverage. What are the 3 different types of definitions of TPD insurance? Here are they:
- Own occupation TPD: In this case, the claimant should be unable to work in his own occupation again
- Non-occupational TPD: The claimant should not be able to conduct 2-5 daily living activities
- Any occupation TPD: The claimant should not be able to work in his occupation and even in any other occupation that might suit him in terms of training, education and experience.
Own occupation TPD will have a higher premium cost due to the fact that it has maximum specific definition and it is easier to satiate than the non-occupational TPD. Any occupation TPD will also have high premium costs than other non-occupational TPD. TPD insurance is created to help the policyholder with living costs in case you are not able to work.
Why should you have TPD insurance?
TPD insurance offers lump sum amount in case you no longer work for injury and sickness. TPD event is serious and you will need financial assistance for paying medical bills and the future living costs when you can’t work any longer. Check out few facts on TPD:
- 2.6 million Americans below the age of 65 are millions who live with different types of physical disabilities
- There is an estimate of 60,000 Americans who suffer from strokes in a year which means 1 stroke in every 10 minutes
- 90% of the survivors of stroke live at their home and the majority of them have some kind of disability
1 million or more Americans require 1 million assistance with different core activities due to severe forms of disability
Hence, as we see TPD payouts are rather complex area of taxation and this is why it is recommended that you get professional advice during the event of TPD claim. To conclude, TPD insurance pays one lump sum amount to help you fund your future expenses. Get enough coverage so that you don’t have to fall in trouble during disabilities.
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