Services: Total and Permanent Disablement Insurance

What would you do if you found out you could never return back to your occupation again due to a disablement?

Becoming disabled and not being able to work again can totally change your plans for the future… can be more of a financial burden on the family than death.

TPD Insurance is an additional benefit on Life Insurance and brings forward the payment of a lump sum of money that otherwise would be paid on Death.

There are three definitions of TPD and they are:


1. Own Occupation
2. Any Occupation
3. Homemaker

Case Study

Joan’s parents had always instilled in her the value of Life Insurance. As a single mother with two small children, even when times were tough, she paid her premium.

When Joan’s grandparents moved in with her, Joan used the ‘increase event’ trigger to increase her sum insured. This was to ensure that if she was unable to work as a nurse and provide for her, now very large family, that there would be enough money from her insurance to care for them all.

While driving to visit her parents one weekend, Joan was in a serious car accident. She sustained spinal injuries and a broken arm. As a result, she has permanent restricted mobility and cannot stand for more than two hours a day. Her doctor told her she would never work at full capacity as a nurse again.

Joan received a lump sum payment from her TPD insurance. Due to Joan having the “Own” occupation definition, Joan received the full sum insured, some of which she used to modify her house to accommodate her restricted mobility. Joan also received her income protection benefits for nine months whilst in rehabilitation.

Joan now works two days a week as a receptionist – a job which involves mostly sitting all day. Joan now receives partial benefits from her income protection to supplement her income.

* Based on a real claim. Names have been changed.