TPD Insurance explained: top things you should know

TPD Insurance -

Living a full life brings enough daily challenges; getting TPD Insurance can eliminate the added worry about how you’d cope financially if an injury or illness meant you couldn’t work ever again.

What is TPD Insurance and what is its purpose? 

TPD insurance, or Total and Permanent Disability insurance, is a type of insurance policy that provides you with financial coverage in case you become totally and permanently disabled and cannot longer work.
Its primary purpose is to provide financial protection and support during unexpected times of disability, ensuring that you can cover medical expenses, ongoing care costs, and other financial obligations that may arise due to the disability. 

Understanding the coverage benefits of TPD Insurance

It is important to understand the coverage benefits of TPD Insurance, so you can make an informed decision before you purchase a policy.

Here are key things to know about TPD insurance: 

  • It covers a range of scenarios – physical and mental

The coverage and benefits of TPD Insurance typically include a lump-sum payment in the event of total and permanent disability resulting from events such as spinal cord injuries, or after the onset of illnesses such as cancer, heart disease, and neurological disorders like Motor Neurone Disease. 
TAL TPD Insurance provides coverage for certain types of mental illness, meaning that you are also protected in case you become totally and permanently disabled due to such conditions.
  • Lump sum payout

A TPD payout takes the form of a one-off lump sum cash benefit, rather than ongoing income support payments made over a period of time. It’s your choice how you use these funds, but it could include living expenses for you and your family; mortgage repayments or rent; or in-home nursing support, rehabilitation or other medical costs. It’s about ensuring you and your family maintain your financial obligations, so you can focus on your health and wellbeing.

How much TPD Insurance do you need and how much does it cost? 

Determining the appropriate insurance coverage for you depends on individual factors such as your income, savings, family situation, and ongoing household expenses. Additionally, your financial situation, savings, investments, and health can influence the amount of cover you require. The amount of cover you take out will determine the premium you pay.
TPD cover options are flexible. You can choose between stepped or level premiums. With stepped, your premiums increase each year with your age and the level of cover. Level premiums generally remain more constant and can be more cost-effective long term. 
Your premium will also increase every year when your cover increases through indexation to ensure it can keep up with the cost of living

Read the PDS for all the options available in TAL TPD Insurance.

Choosing the right TPD Insurance

When taking out TPD Insurance cover, it’s a good idea to consider the main risks that apply to you and your personal situation.  It’s also important to make sure you’re aware of the typical exclusions for TPD Insurance. TAL TPD Insurance excludes intentional self-inflicted act.

Getting TPD Insurance bundled with life insurance or income protection

You can take out TPD Insurance on its own or you can bundle it with your Life Insurance plan. Your premium will vary depending on a range of factors, such as your age, gender, health, occupation, personal pastimes, whether you smoke and the type and amount of cover you choose.
With TPD insurance, you can have peace of mind, knowing that you and your loved ones are financially protected in case of unforeseen events.


The information provided on this website is general advice only and does not take into account you individual needs, objectives or financial situation. You should read the relevant PRODUCT DISCLOSURE STATEMENT (PDS) AND FINANCIAL SERVICES GUIDE (FSG) before making a decision to purchase or continue to hold a product. Life insurance issued by TAL Life Limited ABN 70 050 109 450 AFSL 237848.  Promoted and distributed by TAL Direct Pty Limited ABN 39 084 666 017 AFSL 243260.


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