How Much TPD Insurance Do I Need?
Having a total and permanent disability insurance cover ensures that you get a lump sum or income stream to take care of your expenses in case you become permanently disabled. However, if you are like most people, determining the amount of cover you need could prove difficult and you may be wondering “How much TPD insurance do I need?” Generally, you need to take your personal situation and family needs into account. Note that in most cases, the benefit paid when a claim is made is never too large and often falls short of expectation.
There is no set amount of TPD insurance that fits everyone. This is because you are your family are unique, which means your insurance needs are also unique. However, there are several factors that will help you determine the coverage your family may require:
Living expenses
Your family’s annual living expenses should be given priority when determining how much coverage you need. Your TPD insurance coverage is meant to meet all these expenses and allow your family to remain financially stable even if you are unable to work. You will also need to determine how many years you wish to cover your family’s living expenses. Note that the amount of cover you choose will affect the amount of premium you will have to pay.
Your other sources of income apart from your salary should also be taken into consideration (including your investment income) as these will also help to offset the living expenses and thus lower the coverage amount. In addition, your income protection insurance should also be taken into account as this could enable you to reduce the amount of TPD insurance you need. Any savings you could easily access when needed should also be considered.
Debts
Your current debts are also an important factor when determining how much you need in TPD coverage. If you have an outstanding mortgage balance or credit card debt, some of the TPD benefits would be used to pay off these debts and should therefore be included in the TPD insurance coverage.
Child support and education
If you have children, it is important to consider how much would be needed in the future to support them and how many years they would require support. For instance, you will need to estimate their monthly health and dental insurance costs. You should also have an estimated cost for the university that each child is most likely to attend.
TPD insurance calculator
A TPD insurance calculator can be really useful when determining the amount of TPD insurance you need, click here and start calculating. This will help you calculate the amount that would be appropriate for your TPD insurance by taking into account the abovementioned factors. A TPD insurance calculator is used online and all your calculations are carried out anonymously.
Once you know how much coverage you need, you can start shopping around for the best TPD insurance policy. Comparing online total and permanent disability insurance quotes from different companies would give you some of the companies you can work with depending on the affordability of their TPD insurance cover. Once you are able to paint a picture of your family’s future and the costs involved, you will begin to understand just how important it is to have TPD insurance.
Other Related TPD Insurance Blog Posts:
How Much TPD Insurance Do I Need? is a post from: http://www.mecovered.com.au.
No comments:
Post a Comment