Total Permanent Disability insurance or tpd insurance plans are offered as standalone plans or as add on covers with other types of life insurance plans.
There are two types of plans offered to buyers;
- the first type is cheap or basic plans
- the second type of premium or comprehensive plans.
TPD plans can cost as less as $8 – $10 a month; if the buyer is a non smoking young adult who does not have any pre-existing health conditions. Buyers who opt for comprehensive TPD plans with a maximum compensation payout may have to pay higher premiums.
These plans have two types of definitions, that are the own definition and the any occupation definition. The definition of the contract will determine the eligibility criteria of the policy holder to file a claim and the compensation amount the policy holder will receive.
Eligibility criteria of TPD plans
The basic eligibility criteria for these plans include; the buyer has to be an Australian resident, has to be either employed by a company or has to be self employed and has to be a certain age.
Child life insurance plans are not the same as TPD plans and have different eligibility criteria. Each insurer in Australia has a list of illnesses and injuries they cover; however it should be noted that most insurers only cover a limited number of disabilities for basic plans.
Some of the disabilities covered by the leading insurers in Australia include, head trauma, loss of limbs, loss of eyes, loss of use of limbs and loss of vision. Other significant disabilities may also be covered by some insurers.
Ease of purchasing TPD plans online is one of the most basic benefits offered by insurers in Australia. The primary and most important benefit offered to policy holders who file a successful claim is one lump sum payment given after the claim application is approved by the insurer.
This lump sum payment can be used by the policy holder to pay for medical bills, run his household or repay loans and mortgage repayments. The purpose of this payment is to ensure that the policy holder has money in hand to pay for various expenses that may occur due to the disability.
The compensation payment can be used to help the policy holder until he finds another source of income. It should be noted that if the policy holder has opted for a good cover; then the amount he receives may be adequate to support him for a long time.
Additional benefits of total permanent disability insurance
While monetary benefits are considered to be primary benefits due to their importance, peace of mind and the ability to live a relatively stress free life are also important secondary benefits.
TPD plans can ensure that you and your family can live your life without fearing loss of income due to disability. These plans give families in Australia, the financial stability they require when they are unable to earn income, and this in turn ensures a relatively peaceful life.
TPD plans offer these benefits to policy holders who opt for good plans, since the policy holder knows that he and his family will not have to suffer financially when they are already suffering due to a disability.
Claim options for total permanent disability insurance
To get the basic compensation payment for TPD plans, a claim has to be filed within a time frame. The claim can take a few days to a few weeks to be approved depending on the insurer and the terms of the plan These days, filing a claim with the insurer only takes minutes and can be done via the phone, internet or fax however; to ensure a successful claim documents along with relevant information must be provided.
With holding claim related information, health related information or finance related information can lead to a rejected claim. The claim related eligibility criteria of TPD plans include; the policy holder has to file a complete claim with supported documents such as proof of injury, proof of disability and other medical documents to support his claim.
The compensation amount provided will depend on the proofs submitted since these proofs will help the insurer determine the level of the injuries and disability. Claims can be approved in as less as 4 days provided the policy holder co-operates with the insurer, provides the necessary information and documents on time.
Remember, hundreds of claims are approved every month by insurers in Australia and these claims are paid on time when buyers meet the eligibility criteria and provide documents along with completed claim forms.
Discounts while buying insurance
Buyers who are on a strict budget while buying insurance plans have two options. They can either opt for cheap plans that offer limited benefits and may have some restrictions; or they purchase good plans by opting for discounts, deals and other promotional offers.
Both insurers and insurance comparison websites offer deals and discounts from time to time. Insurers generally offer a premium discount if the buyer pays premiums once a year in advance to the insurer and insurers may also offer a non-smokers discount or a healthy BMI discount to buyers who meet the eligibility criteria. Insurance comparison websites may offer other attractive discounts that can be clubbed with the discounts offered by insurers.
To get details of all the types of Total Permanent Disability insurance discounts, you can either contact an insurance agent such as an insurance comparison website or you can contact an insurance advisor who can help you understand how to avail of these discounts by opting for the right insurer.
It should be noted that tax benefits on the compensation amount are usually not offered to buyers of TPD plans; hence if you are purchasing a TPD plan for tax benefits then you may want to consult with an insurance advisor or financial advisor who can give you personalized advice depending on your current financial situation.