What is Total Permanent Disability Insurance?
Total and Permanent Disability Insurance (TPD) is normally an optional extra cover on a life policy and commonly covers against some permanent disability which prevents you from working in your chosen occupation. The amount of disability required varies - for example a surgeon might be considered totally disabled through the loss of one hand. The amount of cover you can buy is limited to the amount of the life cover purchased.
Usually only one Total Permanent Disability claim is ever payable to an individual as a prepayment of your life cover. After a payout you may become uninsurable and no longer able to obtain death, TPD, trauma or income protection cover. It is important to have sufficient cover to enable you to live out your remaining life on the proceeds of the claim.
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