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Total Permanent Disability Insurance


Total Permanent Disability Insurance

What is total permanent disability insurance?

Total Permanent Disability (TPD) is a phrase used in the insurance industry and in law. Generally speaking, it means that because of a sickness or injury, a person is unable to work in their own or any occupation for which they are suited by training, education, or experience.

A person is permanently and totally disabled if both 1 and 2 below apply

1. He or she cannot engage in any substantial gainful activity because of a physical or mental condition.
2. A physician determines that the condition has lasted or can be expected to last continuously for at least a year or can lead to death.

What conditions are considered disabilities?

For adults, the medical conditions that qualify for SSDI or SSI include:

  • Musculoskeletal problems, such as back conditions and other dysfunctions of the joints and bones
  • Senses and speech issues, such as vision and hearing loss
  • Respiratory illnesses, such as asthma and cystic fibrosis
  • Cardiovascular conditions, such as chronic heart failure or coronary artery disease
  • Digestive tract problems, such as liver disease and inflammatory bowel disease (IBD)
  • Neurological disorders, such as multiple sclerosis, cerebral palsy, Parkinson's disease, and epilepsy
  • Blood disorders, such as sickle cell disease or hemophilia
  • Mental disorders, such as depression, anxiety, schizophrenia, autism, or intellectual disability
  • Immune system disorders, such as HIV/AIDS, lupus, rheumatoid arthritis, and kidney disease

What is a permanent disability?

Permanent disability (PD) is any lasting disability from your work injury or illness that affects your ability to earn a living. If your injury or illness results in PD you are entitled to PD benefits, even if you are able to go back to work.

What is a permanent partial disability?

The most common type of workers' compensation claim is one for permanent partial disability (PPD). PPD benefits are paid to people who are not totallydisabled but who have some type of lasting impairment or who are only capable of returning to modified or lower-paying work.

What is a TPD claim?

TPD stands for Total and Permanent Disability and the industry generally uses it to describe a lump sum payment that may be available to you following a severe injury or illness that affects your ability to return to work.

What is a permanent disability rating?

Permanent disability ratings are used to assess the degree of damage that resulted from your work-related injury or occupational disease. A permanent disability rating, sometimes known as a permanent impairment rating, is an assessment of the severity of your permanent impairment.

What does TPD cover you for?

Total and Permanent Disability Insurance (TPD) is designed to help take the pressure off you financially if you suffer an illness or injury that leaves you totally and permanently disabled. The lump sum benefit paid is often used to eliminate debts, pay for medical expenses or fund permanent lifestyle changes.

What does double TPD mean?

Double TPD is another option available in a combined life and Total and Permanent Disability policy. It allows for the reinstatement of your full life cover benefit following the payment of a total and permanent disablement claim.

Total and Permanent Disability (TPD) Insurance Claims or payout

Three things you need to consider before making a TPD claim:

  • Make sure you understand the reasons why a TPD claim could be disputed.
  • Check if you're eligible to make a claim.
  • Follow the appropriate steps, depending on whether your TPD is included inside your super fund or a standalone policy.