Navigating Total and Permanent Disability (TPD) Insurance: A Comprehensive Guide

How Does Total and Permanent Disability Insurance Work?

TPD insurance covers severe medical conditions that permanently impair your ability to work. These can include injuries from accidents, major illnesses like cancer or heart disease, or even degenerative conditions like multiple sclerosis. Whether you can claim TPD depends on your policy. Typically, TPD insurance is divided into two categories:

• Own Occupation Total and Permanent Disability Insurance pays out if you can no longer work in your chosen profession. Professionals like doctors or tradespeople often choose this option because retraining for another job might not be feasible.
• Any Occupation Total and Permanent Disability Insuranceis more stringent and only pays out if you can no longer perform any type of paid work. Because of the higher threshold, this cover is generally cheaper than Own Occupation cover.

Key Benefits of Total and Permanent Disability Insurance

1. Financial Relief: The lump sum payout provides immediate financial relief, allowing you to pay for medical treatments, mortgage repayments, and day-to-day living expenses.
2. Coverage Flexibility: You can choose the amount of coverage based on your financial needs, which can include considerations like debt repayments, future medical bills, or the financial well-being of dependents​.
3. Partial Disability: Some policies offer partial payments if you suffer a significant but not total disability, such as losing a limb or the ability to use one eye​.

How to Qualify for a Total and Permanent Disability Claim

To make a claim, you must prove that your disability meets your insurer’s definition of "total and permanent." This could involve providing medical records, undergoing assessments, and offering proof of how your condition affects your ability to work. The process can be complex, and in some cases, legal or financial advice is recommended to ensure your claim is handled properly​.

Factors to Consider Before Getting TPD Insurance

1. Existing Coverage: Review any current policies, such as trauma cover or income protection, to see if they provide adequate protection in case of disability.
2. Living Costs: Consider your financial situation, including your savings, ongoing expenses, and whether your family would need extra support in case you were unable to work.
3. Occupation and Lifestyle Risks: If your job or hobbies carry a higher risk of injury, TPD cover may offer essential peace of mind​

Is Total and Permanent Disability Insurance Worth It?

For most New Zealanders, TPD insurance is a vital lifeline. It ensures that if you experience a life-altering condition, you and your family are financially protected. While it can seem expensive, the costs often outweigh the financial burden you would face without it. If your savings or current insurance policies wouldn’t cover the costs of long-term disability, TPD insurance is a prudent choice​.

Secure Your Future with Confidence

At Eureka Financial Services, we specialise in tailored TPD insurance solutions designed to meet your unique needs. Reach out to our expert team today for a personalised consultation, and take the first step towards protecting your financial well-being.