Total And Permanent Disability Insurance Definition – Understand Your Policy

total-and-permanent-disability-insurance-definition-example1 The total and permanent disability insurance definition is usually the same for different insurance companies and is given as the insurance cover that provides a lump sum payout to the insured following total and permanent disability. Most employees get Workers Compensation Insurance, which covers them against injuries sustained while carrying out their workplace duties. However, you can purchase your own total permanent disability insurance separately if you are a self employed individual or if feel your workers compensation does not provide sufficient cover.

What constitutes total and permanent disability?

The total and permanent disability (TPD) meaning is provided in each policy document. TPD refers to your mental or physical condition following an injury that is considered severe enough to stop you from engaging in activities that would normally earn your income. The total and permanent disability definition could vary between companies and even between policies. As such, when purchasing this type of insurance, it is important to be aware of the definition provided so you know exactly what you are covered for.

Own or any occupation

There are two main definitions for total and permanent disability under this type of insurance policy. The first is own occupation TPD definition, which refers to the inability to perform the duties of your particular occupation ever again. The second definition is that for any occupation TPD, which refers to the inability to work in any occupation ever again. The own occupation TPD definition is only available for specific occupations.

Definition of physical loss

In addition to definition differences, different companies or policies might have different payouts for different injuries that cause permanent disability. In some policies, total and permanent disability is defined as total physical loss, which usually means the loss of sight in both eyes, the loss of both arms, or loss of both legs. In such a case, the physical losses you are suffering have to be pairs. This means that your disability may not be sufficient; your limbs, for instance, must be completely severed or completely useless. Keep in mind that it is not total or permanent disability but total and permanent disability. As such, it can be very difficult to make your full claim depending on the TPD clause included in your policy.

Benefits

Ideally, a total permanent disability cover should cover your medical expenses following your disability and pay your bills as they come. The payout should also be sufficient to assist you in making any structural adjustments you may need in your home including handrails and wheelchair ramps. TPD insurance is especially important if you have any debts or mortgages to pay off as it will ensure that your loved ones do not have to bear these financial burdens.

A total permanent disability cover is just as important as life insurance. This is because your ability to earn the money to keep your family in the same financial condition you enjoy today is equally affected by death as it would by permanent disability. You can purchase your total permanent disability cover with life insurance or on a standalone basis visit our website for more info.

Other Related TPD Insurance Blog Posts: