Total and Permanent Disablement (TPD) Insurance Cover is a lump-sum benefit payable on the total and permanent disablement of an insured person. Total and permanent disablement can often mean that the person insured is unable to ever work again due to sickness or injury.
There are a number of TPD definitions:
Any Occupation: This requires the insured person be unlikely (or unable) to ever be gainfully employed in any occupation for which they are reasonably suited based on their education, training or experience.
Own Occupation: This requires the insured person to be unlikely (or unable) to ever be gainfully employed in his or her own occupation. The definition is relevant to those insured persons with an occupation that is particularly specialised.
Home Duties: This caters for those working in the home and/or caring for children or family. The definition requires the insured to be unlikely (or unable) to perform any domestic duties, or be engaged in any occupation for which they are reasonably suited by their education, training or experience.
Future Insurability: Most Term Life Insurance and TPD policies provide for future increases in cover, with limited application requirements, so that future increases are made relatively simply.