Total and Permanent Disability Insurance

Total and Permanent Disability Insurance (TPD) is normally an extra cover on a life policy and commonly covers you for some permanent disability that prevents you from working in your usual occupation. The amount of disability required for you to make a claim varies. If you are a doctor, you may be considered as being totally disabled if you have lost the use of one hand. Claims are usually paid as a lump sum and you cannot be covered for more than the amount of life insurance you have purchased.

One disadvantage of TPD is that generally, you can only ever claim it once. It may also make your death cover void.

You need to ensure you have enough cover from a TPD payout to live for an indefinite period in case you are no longer insurable.