All You Need To Know About Total And Permanent

Disability Insurance


Life is uncertain, and we never know when an accident may occur that could lead to us becoming unable to work. This is why Total Permanent Disability (TPD) insurance is the best option to financially help anyone who falls into this situation. TPD insurance is a type of insurance coverage that pays you a lump sum amount, as per your selected level of cover, if you become totally and permanently disabled and are unable to return to work ever again.

Some people often confuse TPD insurance with income protection insurance, but there is actually a huge difference between the two and the benefits they provide. Income protection insurance is designed to provide a certain portion of your income every month when you are temporarily ill or injured and unable to get back to work. In comparison, TPD insurance provides a lump sum amount if you become permanently disabled and are never able to return to work. This amount can be used to pay for your immediate medical expenses, loans, modifications to your home, or any other type of financial expense.

One of the most important things that you need to know about TPD insurance is the definition of your occupation. There are two different types of definitions available:


  1. Own Occupation: This means that your benefit will be paid out if you become disabled, and you can no longer perform your current occupation. You may still be able to perform another form of work but, if you choose to take out cover for your current occupation, the policy will respond if you can’t perform your current job. As a result, the premium for this type of TPD definition is higher.
  2. Any Occupation: This cover provides a benefit to you if you become unable to perform at any job that is suited to your experience and education. This cover is comparatively cheaper as the likelihood of you being totally & permanently disabled is lower. If you can’t perform your current occupation, but you have the ability to perform a similar occupation that relates to your education or experience, then you will not be eligible for this benefit.


Depending on your type of TPD cover, you could be covered if you cannot your current occupation. Credit: Unsplash


Do you need TPD insurance?

Now that you know about TPD insurance, do you need it? Or how do you know if you need TPD insurance? The simple answer to this question is to ask yourself what will happen if you become permanently disabled. Will you be able to handle all of the expenses of your family? Do you have enough savings to cover all your medical bills and debt for the rest of your life?

Calculate the support your family will need, and the gap between how much you have and how much you need. This will tell you if you need TPD insurance, and in most cases, everyone will need TPD insurance. Getting a lump sum payment during a tough time, where you cannot work will definitely make a huge difference to your family, so it is best to take out TPD insurance and remain secure, rather than regretting it later.


The Right TPD Insurer For You

There are many insurance companies on the market, and everyone will have a range of different policies. However, when it comes to choosing the best insurance company, you will need to consider their experience and reputation, as well as their policy. Aspect Underwriting: with over 40 years of collective experience in the insurance industry, offer customised insurance underwriting, broking, and consulting services.

Aspect has one of the most flexible TPD insurance policies in Australia. You can take out cover of up to $1,000,000 with no medical tests. All you need is to be between 18-64 years old, and you can take out a TPD insurance policy. And the best thing about Aspect’s TPD insurance is that you can easily apply for TPD insurance online within minutes and get verified in less than an hour. Instead of worrying about the future, instead be covered for anything that might come your way, with Aspect Underwriting.

Mike Wallis

Mike has over 25 years experience, having spent his first seven years working as a Broker at Jardine Lloyd Thomson in Melbourne and in 2002 was transferred to JLT’s Accident and Health Department in London. For four years (2002 – 2005) Mike was a specialist A&H Lloyd’s Broker and during this time developed excellent relationships with the Lloyd’s A&H underwriting fraternity. In 2006 he returned to Australia in a senior broking position with overall responsibility for Placement Strategy, including the implementation of underwriting facilities and the various authorities granted by Lloyd’s. Mike was the underwriter at two specialist Underwriting Agencies prior to founding Aspect Underwriting in 2016.