What Does Total and Permanent Disability Mean?

Being sick or injured is never fun, but knowing you can get a lump sum for medical and rehabilitation bills is a relief. If you qualify, a total permanent disability (TPD) insurance policy can provide this sum.
Total and permanent disability meaning

Getting sick or injured is never fun, but knowing that you can claim a lump sum payout to pay your medical and rehabilitation bills can be a relief. A total permanent disability (TPD) can give you access to this sum if you have the insurance policy and qualify.

You might have heard the phrase TPD from your insurer or lawyer when you got sick and wondered: “What does total and permanent disability mean?”. TPD does not always mean what people think.

In this article, we will answer all of your questions about the definition of total permanent disability in Australia. If you discover you qualify for a TPD insurance claim, you should speak with Aussie Injury Lawyers to get the insurance payout you deserve.

What is Total and Permanent Disability?

A total and permanent disability is any injury or illness that makes it impossible or difficult for you to do your job. Anything that makes you unable to work on your own or in an occupation you are qualified for by training, experience, or education falls under this category.

As you can imagine, this kind of illness or injury must be a serious one, as it can cripple your ability to make a living for yourself. However, getting a total and permanent disability insurance policy can save you if you get injured or sick.

You can get TPD insurance as a part of your life insurance package or disability insurance policy. This insurance can provide financial security for you and your family, offsetting your medical expenses and rehabilitation costs.

Although the definitions of total permanent disability differ based on the insurance policies, there is still a general understanding of what can qualify as a TPD.

What Qualifies as a Total and Permanent Disability?

Total permanent disability insurance will only cover if you become totally and permanently disabled due to an injury or illness and can’t work. So, while losing your toe or finger is a severe accident, it might not qualify you for a TPD insurance claim as you can continue to work.

Insurers have different definitions of TPD, and you can check your insurer’s Product Disclosure Statement (PDS) to understand their definition of TPD. Some TPD insurance policies will only pay if you cannot work at ANY job. However, they might give you a small payout for a peculiar injury or illness. Certain occupations preclude you from any job TPD policy.

Others will pay you if you cannot work at the specific job of your training and experience. So, if you injure your back and work in manual labour, you could get your TPD claim. It is also likely that a person with an autoimmune disorder who works in a high-stress environment will successfully process their TPD insurance claims.

Call your insurer or super fund if you are unsure about your TPD insurance coverage. Your insurance lawyer also understands insurance benefits and can help you make successful TPD claims.

Do You Need TPD Insurance?

You can only get a TPD benefit when you have permanent disability insurance. When you get sick, there is a lot that permanent disability insurance can cover. Some of the things a TPD insurance covers include:

  • Your medical treatment costs

Your TPD insurance should cover the costs of your medical treatment. The insurance should pay for all your medical bills. 

  • Living expenses for you and your family

You might be unable to pay for the cost of housing for you and your family after losing your job. Your insurance should be able to cover this cost, so you wouldn’t have to be homeless. 

  • Debt repayments on a mortgage or credit card

If your job enables you to pay off certain debts, your TPD insurance can cover those debts for the period of time you will be unable to work. 

  • Retirement savings

You can also have some money left on your TPD insurance to tide you over on your retirement. It can help you figure out what you want to do while you are out of a job. 

There is no doubt that you need a TPD insurance cover. However, if you have private health or income protection insurance, you can use it to pay for your medical bills and replace your income.

Your monthly premium should be determined after you understand the gap between what you have and what you will need in the case of a total permanent disability. Your TPD cover can come with stepped or level premiums. With stepped premiums, your premium increases yearly based on the higher possibility of laying a TPD claim as you age. Level premiums charge a higher premium at the start but do not increase the amount based on age.

You can speak with your financial adviser if you are unsure if you need or have TPD coverage.

How to Get TPD Insurance

Many Australians already have TPD insurance through their super fund without their knowledge. Ask your insurer if you have total and permanent disability insurance as part of your policies. You should also find out how much TPD cover you have.

Most super funds have TPD cover, and this TPD cover is often cheaper than buying directly. You can also increase the amount of your TPD cover in your super fund. It is important to note that you can have TPD insurance not only in your superannuation. You can also take a private policy for your protection. This kind of policy usually has higher premiums with a larger payout if you make a claim. It is also not tax-deductible, and your claim payments are not taxed.

The maximum coverage available in Australia with one insurer is generally between $3 million and $5 million. You can always get your TPD insurance by consulting a financial adviser, insurance broker, or an insurance company directly. You can buy your TPD insurance alone or as part of a life insurance package. In a package, taking a lump sum in your TPD claim will affect the amount you get for your life insurance.

If you are unclear about any part of your insurance package, check your insurance PDS or ask your insurer.

The Benefits of Making TPD Claims with a Lawyer 

Getting your life insured will be helpful when you need to make a TPD claim due to a permanent illness or injury. Having an experienced TPD claims lawyer on your side can make the TPD claims process even more accessible and increase your chances of success.

An experienced TPD lawyer will ensure you have enough medical evidence to make your case irrefutable. Insurance lawyers can also help you make the best choice for pursuing your claim when you have multiple supers. As a permanently disabled person, you are already experiencing a lot of changes. Having a lawyer do all the work of combining medical history and filing papers will ease some of your stress. It will also increase your chances for a successful claim.

At Aussie Injury Lawyers, our experienced lawyers will give you the best possible legal representation. Our 100% no-win, no-fee policy allows you to use our legal services without paying until we win your claim. We are committed to getting the insured person all the insurance payout benefits they deserve.Contact us today!



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