Total and permanent disability insurance is a policy that covers you in the event that you become completely disabled and unable to work to earn an income. However, different insurance providers will offer products with varying levels of coverage. As such, it is important to take the time to consider all your options before you make the decision to purchase any particular TPD insurance product. Generally, the best TPD insurance is one that provides adequate coverage for you and your family at a rate that you can afford.
How is TPD defined?
The level of cover that a TPD insurance policy provides is largely dependent of the total and permanent disablement definition provided in the policy. A broader definition will provide greater coverage and will probably cost you more. If a policy refers to disability as the inability to earn an income, the insurer may not cover you if you can earn an income in some way even if it is not your occupation of choice. If the policy describes disability as total physical loss, the loss has to be in pairs – either both eyes, both limbs, or an eye and a limb.
The cost of your TPD insurance policy will be determined by a number of factors. One of them is the level of coverage that you choose or the benefit amount you would get in case you become disabled. While many people choose this amount by multiplying their annual income several times over, it is important to think about the particular needs you may have in case you can no longer work. This includes your family expenses, the medical costs you would incur as a result of the disability and repayment of debts.
When you are considering the cost of the total and permanent disability cover, remember that several other factors will influence the rates you get. These include your age, gender and lifestyle options. For instance, a man in his late twenties is likely to get rates that are more favorable than those that a man in his fifties would get. In addition, if you smoke or have a preexisting medical condition, this would also mean higher premium costs.
Online insurance quotes
TPD insurance quotes are a great resource when you need to find different policies you can comfortably afford. Note that it is critical to ensure your premium payments are current. Missed payments could easily mean losing out on the benefits when you require them. With online TPD insurance quotes, you get to compare the different policies on offer so you can focus your research efforts on the policies you can actually afford, visit Money Smart for more info. The best TPD insurance policies in such a case would be those that offer a total and permanent disablement definition that is most favorable.
There are several considerations to be made when purchasing your TPD insurance policy. For instance, you can choose to take out your policy through your superannuation fund or get a standalone policy from a private insurance company. In addition, you may opt to bundle your TPD insurance with life insurance or trauma insurance. Getting expert advice is also recommended when you want to get the best TPD insurance.