What is Total & Permanent Disablement?
Total & Permanent Disablement pays you a lump sum if you suffer an illness or injury that stops you from working again.
Why do I need Total & Permanent Disablement?
Imagine having a major event – whether it’s an accident, illness, injury, or even mental illness and not being able to earn an income, for the rest of your life. Total & Permanent Disablement covers exactly this situation. It makes sense to spend a few dollars to cover you and your family if anything prevents you from working for the rest of your life.
Do I have the right cover?
There are different ways you can structure your cover which will make a massive difference to you at claim time. We always recommend a ‘Stand Alone’ benefit when available.
When a claim is paid under a Stand Alone benefit, the pay-out does not affect any other benefits that you have i.e. if you have $500,000 Life Insurance and $200,000 Total & Permanent Disablement cover, and you make a claim, you receive a pay-out of $200,000
and your Life Insurance benefit will remain at $500,000.
With an Accelerated benefit, your Total & Permanent Disablement benefit is linked to your Life Insurance benefit. If you make a claim under your Total & Permanent Disablement cover, your Life Insurance benefit will reduce by the amount that is paid out i.e. if you have $500,000 Life Insurance and $200,000 Total & Permanent Disablement cover, and make a claim, you will receive a pay-out of $200,000 and your Life Insurance benefit will reduce to $300,000.