Total and Permanent Disability (TPD) Insurance

Total Permanent Disability (commonly referred to as TPD) insurance provides a lump sum payout for you, if you were to become totally and permanently disabled due to injury or illness and are unable to work in any capacity in any occupation based on your previous education, training or experience.

You can choose your amount of cover, up to $3 million, giving you the means to access medical and rehabilitation treatments, so you can go on making the most of your life.

TPD insurance can help give you the financial peace of mind that you will be looked after financially during your recovery, if you suffer a permanent illness or injury. Without the financial security of a TPD insurance lump sum payment, and without an income as you’re unable to work, it may be challenging to pay your day-to-day bills, manage any medical expenses and maintain your current standard of living.

The right amount of cover for you will depend on your age, occupation, lifestyle, family circumstances and financial situation. Because everyone is unique, the right amount of cover for you is a personal decision. You should factor in your financial situation and any other types of life or health insurance policies you have when considering your TPD Insurance policy. At TAL, cover is available up to a maximum benefit amount of $3m if you become totally and permanently disabled

TPD Insurance is available to eligible Australians who are currently gainfully employed. We assess your situation at the point of application, and your insurance policy is based on your circumstances at that time.

However, if your circumstances change for the better (e.g. you move to a lower risk occupation or quit smoking), you could be entitled to a lower premium, and you can request an alteration to your policy.

Generally, it’s not necessary to undergo a medical examination when applying for TPD Insurance. At TAL, we will ask you some questions about your medical history. You have a duty to tell the insurer anything you know that may be relevant to our decision about providing you with insurance.

This duty applies when you first apply for TPD Insurance, and on an ongoing basis if you choose to extend, vary or reinstate your insurance policy.

After you suffer a specified illness or injury, we can start assessing your TPD claim after you have been out of work for three months in a row. In some cases you may qualify to be assessed immediately, such as due to blindness or loss of limb. Once your claim has been approved, we aim to make your payment as soon as possible. If you remain off work due to illness or injury and you’ve provided us with the claim requirements, you’ll start to receive payments one month after the waiting period ends.

Although these two insurance policies may seem similar, they offer different types of cover that offer benefits in different situations. When you experience a specified illness or injury, trauma insurance will pay a benefit while you are trying to get back to work. However, TPD insurance will pay a benefit if you are unable to ever return to work, in accordance with your Policy Schedule.

With TPD Insurance, your policy premiums are not tax deductible. However, the Lump Sum Payment you receive as a TPD payout are generally not subject to tax, either. This means the full benefit amount payable is yours, tax-free.

TPD claims don't have to be related to a workplace or caused by someone else's negligence. To make a TPD insurance claim, contact us as early as possible. This gives us the opportunity to gather the evidence we require to assess your claim, as delays may impact the time it takes us to process your claim.

When we are notified that you wish to make a claim, we will provide the forms that need to be completed and explain in detail our requirements and what the next steps are.