TPD insurance is a branch of health insurance that deals with any unfortunate situation where the policyholder is left with a ‘total, permanent disability’ (TPD). This is not something many of us like to dwell on for too long, but it is something we will enjoy even less if it happens to us and we are not covered financially by TPD insurance. Many Australians correctly assume that they are protected against TPD by their superannuation fund, but this can be a misleading assumption. Although coverage is provided, it is not likely to be as comprehensive as a separate TPD insurance policy, and each holder must look carefully at the small print to ascertain their existing level of coverage.
Eligibility for TPD insurance
There will, of course, be variations in the terms and conditions of separate insurance providers. However, it is safe to assume that some fundamental similarities will be in place for individuals to be deemed eligible for TPD insurance, namely:
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Subscribe- Gainful employment – Individuals without ‘gainful’ employment (where the applicant performs regular work and receives payments that allow for self-sufficiency) will be ineligible for TPD insurance through most providers, who will assess this status at the time of application and require documented proof.
- Between the ages of 19 and 62 – Some forms of insurance are available to the younger and older generations, but TPD insurance is not among them. Before 19 or after 62, and you’re out of luck.
Contributing factors to any TPD insurance policy
- Dangerous or ‘high-risk’ occupations – Although it does not preclude them from purchasing cover, any TPD insurance policyholder deemed to be employed in a perilous industry can expect to pay higher premiums and face potential caveats attached to any claim. Lists will vary, but you can assume that those involved in heavy industries like mining and similar occupations will be affected.
- Unhealthy behaviours and lifestyle choices – Those who choose to indulge in harmful activities may find themselves unable to purchase TPD insurance or having to pay extra premiums. Those activities include but are not limited to smoking, drinking alcohol, and taking recreational drugs. Some pastimes that affect TPD insurance are mountain climbing, motorcycle riding, skydiving, and other similar activities.
- Health record and hereditary issues – You may not be asked to undergo a health check to avail yourself of TPD insurance. Still, you must fully disclose any pre-existing conditions and examples of hereditary illness.
Do you need TPD insurance?
Throwing out advice purporting to cover all individuals and eventualities is something we are reticent to do, as there are undoubtedly cases where it is not applicable. Suffice it to say that the more protection you can provide for yourself, the greater the weight you can lift from your shoulders and spend time enjoying life. For some people, the premiums for TPD insurance might be unaffordable or mean sacrificing something else important in life, making the decision a more complex one. If you don’t have to worry about that too much, count yourself lucky, take out the best TPD insurance you can, and rest easy knowing you are fully protected if the worst should happen.
