Total Disability Insurance
What is TPD cover?
TPD cover provides a lump-sum payment if you become disabled and you are unable to work again. TPD plans will also provide payment for other seriously disabling situations, such as loss of sight. You should check the relevant PDS to see if you are covered
Why would I need it?
A huge emotional strain is placed on a family to provide support to someone who may not be able to work again and requires fulltime care. Money is the last thing you would want to think about when faced with a lifelong disability.
How much will it cost?
Your insurance premium will be based on a range of factors such as your age, smoking status, gender, occupation, health and the amount of cover you choose. Your financial adviser will develop a plan to suit your budget.
What do I need to think about when deciding which plan is right for me?
An important feature of TPD is the ability to take out cover for your ‘own occupation’ or ‘any occupation’. With ‘own occupation’ cover you are determined to be totally and permanently disabled when you are no longer able to work in your regular job, even if you might be able to work in another occupation. You might consider this cover if you work in an specialised field. You also pay an increased premium to take out‘own occupation’ TPD cover. With ‘any occupation’ cover you are determined to be totally and permanently disabled when you are no longer able to work in any occupation.
Did you know?
The disability rate increases steadily with age, with younger people less likely to report a disability than older people.
Of those aged between 25 and 34, 8% were affected by disability, compared with 40% of those aged between 65
and 69 and 86% of those aged 90 years and over.1 1 Australian Bureau of Statistics. Disability, Ageing and Carers, Australia:
First Results, 2015. Table 2.3 All persons, disability status, by age and sex–2015, proportion of persons
Couldn’t I receive a disability pension?
If you become seriously disabled, receiving a disability pension from the government would provide you with some assistance. You may find that this isn’t enough to maintain your standard of living.
Sources: Centrelink: Payment rates for Disability Support Pension, maximum basic rate at 22 September 2015. Australian Bureau of Statistics: 6302.0 – Average Weekly Earnings, Australia, May 2016.
Adult weekly ordinary times earnings.
What type of claims are paid for TPD cover?
In 2015, AMP paid TPD claims for these conditions:
TPD claims by cause