Total Permanent Disability or TPD Insurance

TPD insurance is a type of personal insurance plan that falls under the life insurance bracket. TPD plans can either be purchased from insurers as stand alone or add on plans. This means that the buyer has the choice to just purchase a TPD plan or to purchase a TPD plan while he is purchasing another type of personal insurance plan.

This type of insurance plan ensures that the policy holder receives one lump sum payment when he files a claim for permanent and total disability. Claims can be filed when the policy holder suffers due to an illness or injury due to which he loses one or all limbs, loses function of one or all limbs, loses an eye or both eye, loses function or one or both eyes or suffers any other significant physical trauma.

The lump sum payment given by the insurer for this type of insurance plan can be used for a variety of purposes such as the ones listed below. The cost of TPD plans will depend on the level of cover along with the definitions and benefits of the plan, choosing a better plan will imply a higher investment but will also imply better benefits and more support from the insurer when you need help the most.

 What Does TPD Insurance Protect You Against?

TPD plans protect you against financial instability and difficulties that may be caused due to total and permanent disabilities. These plans protect both you and your family financially and ensure that you and your family can live a relatively normal life even when you are unable to work in your current occupation again.

TPD insurance not only pays for your hospital costs when you file a claim, but also pays for rehabilitation costs, specialized treatment or medicine and modifications to your home and vehicle due to the disability. TPD insurance may also pay for your mortgage and loan repayments, bills and utilities along with debts if you qualify to file such a claim.

In addition, education expenses along with costs for a permanent housekeeper or full time nurse may also be covered by TPD plans.


What are the Limitations of Total Permanent Disability Insurance?

TPD insurance does not cover temporary injuries and illnesses. This type of insurance plan does not cover mild injuries or illnesses and may not cover critical illnesses such as cancer, heart problems along with diabetes.

For a list of insured injuries, illnesses or medical problems, the buyer should consult either the insurer or an insurance agent before purchasing the selected plan. If a waiting period is applicable, then the policy holder can only get the benefits after the waiting period is over.

This means that, if he policy holder is disabled and has to file a claim when the waiting period is active, then this claim will be rejected.

 Why Opt for TPD Insurance?

TPD plans serve two purposes, they act as an investment towards your future and they ensure peace of mind. These plans should be purchased by those people who are interested in being self reliant even when they are suffering from a serious disability.

These plans should be purchased by people who want to stay assured at all times that the insurer will take care of them. These plans should be purchased by those people who want to be in charge of their own lives even when a disability may come in the way.


What are the Different Definitions of TPD Plans?

Definitions are terms of the contract and the definitions you opt for will influence the amount of compensation you get along with the benefits you get. Listed below are some of the common definitions for this type of insurance plan.

  • The “own” definition implies that the policy holder is self employed and will get benefits if he has become permanently disabled, if he cannot perform the duties required to run his business for 6 months or more and if he is unlikely to ever return to work in his selected main full time occupation.
  • The “any occupation” definition implies that the policy holder is employed and will get the benefits if he is permanently disabled, cannot perform the duties at work for 6 months or more and if he is unable to do any occupation that he is suited to do according to his background in education, training and experience.
  • The “home duties definition” implies that the policy holder is a home maker and that he will get the benefits if he cannot take care of the family, take care of the home, manage the household, look after the children and perform daily activities such as cook and clean for the family. To get the benefits, the home maker should be unable to perform these activities for 6 months or more. Insurers may put an additional clause that will allow the home maker to get the benefits if he is unlikely to perform majority or all of these activities every again.

 How much Compensation can I Expect for TPD Insurance Plans?

  • The amount of compensation you receive from the insurer for TPD insurance will not only depend on the cover limit, the premiums you pay and the type of injuries sustained but also the term of the plan, the definitions and the severity of the injuries sustained. In addition, the likely hood of you returning to a normal life in your occupation or in another occupation will also determine the final compensation amount you receive from the insurer.
  • To make sure that you get the highest compensation amount, you can do a few things such as file the claim in full, support the claim with the required documents such as medical proofs, doctors notes, x-rays, test reports and any other document the insurer may require. Declaring all the relevant information to the insurer periodically along with co-operating with the insurer will also improve your chances of a successful claim.


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