Total and Permanent Disablement Insurance (TPD)

What is TPD Insurance?

Simply put, Total and Permanent Disablement insurance (TPD) is a type of insurance specifically designed to cover a situation or rather an instance where a person is totally disabled and unable to work and earn an income. It should however be noted that the definition of TPD insurance can differ in each policy.  Like you may have already guessed, situations covered by TPD insurance often devastate the person who is totally or rather permanently disabled and his or her family.

Being temporarily laid up is normal. It can happen to anyone. But being unable to earn an income again as a result of the injury is one thing that many cannot put up with easily. While life insurance can always be relied on to pay out for terminal illness and even death, there is always the question of ‘What if a person does not die?’ that is precisely where TPD insurance steps in. without a comprehensive insurance that can cover total permanent disablement, one may be forced to face a heap of costs and expenses in the name of taking care of his or her disability. Keep in mind that the normal household expenses as well as commitments have to be taken care of from the same pocket that takes care of the permanent disability.

In most cases, one is always left with no choice but to make major alterations to the home budget so as to accommodate the costs that are connected in one way or the other with ongoing care as well as management of the disabled person’s condition.

What is Meant by TPD?

One has to be extremely careful when thinking of TPD and its definition. This is mainly because of insurance purposes.

Most people often think that TPD insurance will always be there to pay out some amount of money if they are disabled and can’t do their normal job. Unfortunately, this is not always the case. That is why it is always important to read the disclosure statement of your insurer and understand its provisions well. This will help you to get the exact or rather precise definition of TPD insurance that is applicable to your policy.

If your policy uses the term ‘inability to earn’, this simply means that you cannot earn in any way. For instance, if you can do any job that can give you remuneration such as telemarketing or a sheltered workshop job; your insurer will not cover you.

If your policy on the other hand says ‘total physical loss’, then the loss has to be in pairs. This could be anything from both limbs to both eyes or one limb plus one eye.


Who Needs TPD Insurance?

As already hinted, anyone can suffer an injury. That said and done, it goes without saying that we all need TPD insurance. Accidents do happen form time to time. Should you be a victim of a terrible one, there is no doubt at all that TPD insurance will give you much relief. It may not bring you back to where you were before the accident but it will certainly go a long way to help you reinstate your life the best way possible. It will also help your family to cope with the situation and move forward.

What Cover is Available for TPD?

Most insurance companies offer TPD insurance as part of life insurance policies. That is why it is important to always compare life insurance rates so s to find a policy that can suit your budget well. This way, it can be very easy for you to find out what kind of cover is available with life insurance policies that also include TPD.

Generally, TPD polices pay a lump sum payment when one suffers Total and Permanent Disability. When making and application for a TPD policy, you can apply for the available benefit amount or rather amount that you wish to be paid. You should however keep in mind that the higher or the more benefit amount paid, the higher the premium you will pay for your TPD policy.