Total & Permanent Disability Cover

Provides a lump sum if your illness develops to the extent that you’ll never work again.

Total & Permanent Disability (TPD) cover provides a lump sum in the event that your illness or disability worsens to the extent that you’re unlikely ever to work again.

This lump sum, as with Trauma cover, can be used for number of purposes such as the clearing of debt, replacement income top-up, or to pre-fund retirement or children’s education funds. This can give a great deal of financial flexibility, whilst many choose a sum equal to one year’s earnings.

TPD cover is the cheapest of insurances, as the chances of this happening are very low. The impact on your financial situation in the event that this should occur however, is usually far worse than if the individual had died outright, as it creates a major upheaval and loss of earnings not just for the person afflicted, but also for the other partner, as they will invariably need to take an extended break from work to provide assistance. Even with the payment of benefits under Income Cover, a prolonged period of this situation could have a serious negative impact on your financial position.

These products can all be accelerated or stand-alone off the Life Cover.

What are Stepped Premiums and Level Premiums?

	Stepped Premiums Increase annually as you get older, but usually start cheaper. To cover short or medium term needs.
	Level Premiums Don't increase as you get older but usually start higher. To cover long term needs.

The plan details will vary from insurance company, please refer to the policy wording of the cover.