TPD & Life Insurance
4. Total & Permanent Disability
Authors: Staff Legal Eagle
Firm / Chambers:
Last updated: 11 Aug 2015
- TPD is an additional cover offered under a life insurance policy. It pays policy holders a benefit in the event the life insured suffers total and permanent disability.
- The premium for TPD is dependent on:
- gender;
- smoking status;
- state of health;
- family history;
- occupation; and
- participation in hazardous activities.
- TPD is usually defined under insurance polices as meaning either the life insured:
- cannot work again in any occupation; or
- cannot work in their usual occupation or ‘own’ occupation;
- has suffered a loss of limbs or sight;
- has suffered the loss of their independent existence.
- Insurance companies require the policy holder to certify TPD by a medical practitioner or the company’s medical advisers.
- All policy holders should read the terms and conditions of the specific policy listed under the Product Disclosure Statement as the definition of TPD differs between companies.
- Generally intentional acts that lead to the life insured suffering total or permanent disability will not be covered under TPD insurance policies if they are performed by:
- the life insured;
- the policy owner; or
- a beneficiary
- For example insurance companies will not pay the benefit under the policy if the life insured intentionally jumps off from a roof and suffers total or permanent disability.
- Most insurance policies also for example do not cover any injury caused as a result of engaging in motor sports.
- TPD insurance policies usually end when you reach 65 years of age.
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