Total & Permanent Disablement

What is Total & Permanent Disability?

This form of insurance is normally available as an optional benefit on a term life insurance plan or trauma policy.  The benefits would include a lump sum payment if you became totally and permanently disabled and met the conditions of the Total & Permanent definition chosen at time of application.

A choice at application could be as follows:

1. Any occupation definition, i.e. been absent from work for three consecutive months.
2. Disabled at the end of that three month consecutive period to such an extent that you are unlikely ever again to engage in any occupation for which you are reasonably suited by your education, training or experience and which is likely to generate average monthly earnings of at least 25% of your current monthly earnings in the twelve months before the claim.
3. Own occupation definition.  This particular definition means that the most recent occupation which you are engaged in prior to the date of disability.
   
   Resulting in illness or injury from absence from and unable to engage in your own occupation for three consecutive months.  At the end of that three months to such an extent that you are unlikely ever to be able to engage in your own occupation.

What are the premiums for Total and Permanent Disability?

Please refer to the life insurance section of our website for an overall comparison of various ages and occupations.

Who can apply?

You can apply for Total & Permanent Disability cover providing you are at least age 15 and a maximum age of 60, except for a non-working person who can apply up to age 75.

What are the built-in features?

1. When you survive without life support for more than eight days from the date that satisfies the Total & Permanent Disability condition.
2. The elements, as mentioned, that you are unable to work for three months, no additional survival period applies.
3. Partial payment for specific loss.  If you do suffer a specific loss, loss of use in one eye or one limb, many companies will pay a partial benefit of 25% of the cover up to a maximum of almost half a million dollars.

Optional Built-in Benefit

1. Limited Death Benefit 
   
   This particular benefit applies if you have a standalone Total & Permanent Disability cover as an option to a Miracle/MajorTrauma cover.  The payment would be up to a maximum of $10,000.00 should you pass away without receiving a Total & Permanent Disability benefit.


2. Accommodation Benefit
   
   Again, similar to life insurance, up to $150.00 per day for a maximum of 14 days would be available for a payment to your immediate family members as a reimbursement of accommodation costs.


3. Financial Advice Benefit
   
   Many companies pay an amount to the family of the deceased client, or terminal illness, reimbursement of up to $2,000.00 for the preparation of financial plan prepared by a licensed Financial Planner.


4. Other built-in features
   
   • Life Cover Buy Back 
     If the company does pay the TPD benefit and you have been approved; you are able to buy back life cover up to the amount of the Total & Permanent Disability benefit paid out without having to provide further medical evidence.  This is offered by most companies twelve months after the following:
     
     • The date they received your fully completed claim form or
     • The date that you satisfied the conditions of the particular definition applied for (this offer must be accepted within 30 days of offer)
   
   
   • Automatic Conversion 
     This simply means that the Total & Permanent Disability definition for your policy will automatically convert to a non-working Total & Permanent Disability definition once you reach age 65.
   
   
   • Optional
     There are other options available at extra cost, such as double Total & Permanent Disability option meaning you have the choice of having the full payment made to you and fully reinstated once the claim has been settled.