TPD Insurance In Australia: Who Is Entitled To It And Why You Should Get It If You Can
David Morey 
TPD insurance is a form of insurance specifically designed to protect policyholders and provide them with ample financial support if they are unlucky enough to become totally and permanently disabled. More Australians avail themselves of TPD insurance policies yearly, so is it time to join them? As with almost all insurance, it pays to examine the myriad details and conditions before making any firm decisions. In this article, we will address the subject of TPD insurance and explain why we think you should take some out today.
Do I need TPD insurance?
If you think a large lump sum of cash might improve your life should you be unlucky enough to be rendered totally and permanently disabled, then TPD insurance is for you. It’s as simple as that.
Don’t I Already Have TPD Insurance Through my Superannuation Fund?
It is certainly possible that many Australians have some form of TPD insurance coverage through their superannuation funds. However, it is crucial to carefully check the coverage provided and compare it against TPD insurance taken separately through an insurance company. In most cases, the coverage provided through a super will not only be less than an independent one but will also give lower payouts with added caveats and cost more.
What Factors Affect My Eligibility For TPD Insurance?
TPD insurance policies are among the more stringent and detail-driven when determining eligibility. The following are some typical factors affecting the decision whether to provide an individual with TPD insurance or not:
- Employment — TPD insurance will only be offered to Australians engaged in gainful employment.
- Age — Restrictions are even more severe than standard life insurance, and TPD insurance is generally only available to individuals between 19 and 62. Policies are often re-negotiated regularly, and premiums can be expected to rise as the client ages.
- Dangerous occupations — Statistically, more people are going to be rendered totally and permanently disabled as a result of an accident at work than anywhere else. This risk is exponentially higher in specific industries, and insurers will shy away from providing coverage for those in higher-risk occupations. TPD insurance coverage may still be provided in some cases, but premiums can be significantly higher.
- Lifestyle — Individuals seeking TPD insurance in Australia will be asked to give an honest account of their lifestyle choices, and any activities deemed dangerous will be considered. These include recreational drug use (nicotine and alcohol), general fitness, risky hobbies and pastimes, and all activities that are hazardous to health.
- Pre-existing medical conditions — A health record will be required, and any pre-existing or hereditary conditions may be considered.
Should any of these circumstances change when your TPD insurance policy is active, you must inform the insurers. Not all changes will be harmful, and you may be able to report that you have lost a lot of weight, given up smoking, or any other positive lifestyle changes.
Conclusion
It is impossible to make a statement regarding TPD insurance that accurately represents all Australians and whether they should take it out. However, it is easier to describe than life insurance because it provides for the policyholder in case of an accident or debilitating disease, not just their beneficiaries. We believe that providing yourself with as much coverage as you can afford in life makes sense and that TPD insurance should be high on the list of priorities.
