Total and Permanent Disability (TPD) Insurance

Total and Permanent Disability (TPD) Insurance

Have you ever thought what might happen to you and your family’s current lifestyle if you could no longer work because of illness or injury? Would receiving a large lump sum payment go some way in helping your situation?

Total and Permanent Disability (TDP) Insurance is designed to do precisely that by providing you with a lump sum benefit if you’re unlikely to work again because of sickness or injury.

A TPD benefit can be used for mortgage repayments and other loans, credit card bills, ongoing living expenses, your children’s education, home modifications, rehabilitation costs, medical bills, ongoing care, and more.

It’s an essential element of many financial plans and should seriously be considered if someone you love relies on your income.

How it Works

While the concept of TPD Insurance sounds quite simple, the details can be complex so it pays to use a financial adviser to ensure you get things right. Essentially, you take out a policy, and the insurer agrees to pay you a lump sum if you become injured or ill and are permanently unable to work. Importantly, you can insure for your ‘own’ occupation or for ‘any’ occupation.

TPD insurance is often taken out in conjunction with term life cover, which pays your loved ones if you die. And, like Life Insurance, most TPD insurance is ‘guaranteed renewable’, meaning once you start a policy with an insurer, they must allow you to renew that policy each year, provided you pay your premiums in full and on time.


Many people take out TPD insurance through a superannuation fund. This reduces the overall cost of your TDP insurance premiums because of tax advantages available within super. When people arrange to ‘replace’ the premiums paid from their super, their overall retirement savings are not affected.

Do I Need TPD Insurance?

If a total and permanent disability meant you could no longer work to support your family or loved ones, TPD Insurance should be on the top of your ‘to-do’ list. Unless you have some form of reliable ‘passive income’ to avoid financial hardship, TPD Insurance is a critical component of a personal financial plan.

How Do I Arrange Life Insurance?

Your financial adviser is a TPD Insurance specialist who can help you calculate the amount of TDP Insurance you need. They can also advise you on what’s affordable and how it should be arranged (for example, whether you need a combined Life policy as well or taking it out through your super fund) and help you choose a reputable insurer with a good record of paying claims when they’re needed.

What Happens if I Need to Make a Claim?

The realisation of a total and permanent disability is devastating enough without having the added stress of trying to organise a claim. Leave the claim to the experts by asking an insurance professional to arrange it for you. They’re the experts in dealing with insurance companies and can ensure that everything runs smoothly and that your lump sum benefit is paid as quickly as possible.

What do I need to do now?

Riviera Wealth Partners provide tailored Financial Planning and Insurance advice to safeguard you and your family’s financial future.

For more information or to see how TPD Insurance can help you, please contact us. If you have existing TPD Insurance cover, we can review your policy to make sure it’s still suitable for your circumstances now and that it’s still cost effective for your overall financial goals.