Instant quotes in 2 minutes.
Compare a range of total and permanent disability insurance offers with Savvy today.
Fact checked
We’ve partnered with Compare Club to bring you a range of life insurance policies to help you compare them side by side.
Total and permanent disability (TPD) insurance can be a valuable safety net for you and your family if an injury or illness renders you permanently disabled and unable to return to work. If you’re looking for cover in this area, however, finding the right policy for you often isn’t as simple as picking the first one you come across.
By comparing with Savvy, you’ll be able to consider competitive TPD insurance policies from a panel of trusted, industry-leading life insurers. Simply fill out a free, no-obligation quote and you’ll have a variety of available offers to consider side-by-side. Get the process started with Savvy today.
Total and permanent disability insurance, as the name suggests, is a type of life insurance which provides a lump sum payment if the life insured suffers an illness or injury which prevents them from ever returning to work again. This could be as a result of losing the use of your legs in a car accident or suffering a stroke.
Upon an approved claim, the policyholder will receive a lump sum benefit. There aren’t any restrictions on how you use those funds; you may choose to spend it on living expenses, like food and bills, or to pay off medical expenses. TPD cover is particularly useful if you need to make modifications to your home, like installing a ramp for wheelchair access or if you need to pay for a carer.
Each insurer defines disability differently, so it’s important to read your policy document carefully and compare them with Savvy. However, your TPD insurance will fall into one of two main categories:
This means you may be able to claim for partial disability, provided you have an Own Occupation policy and prove to your insurer that you aren’t able to complete any work in your current position. If you have an Any Occupation policy, you may still be able to claim for partial disability, though it may be more difficult to receive a payout on the basis that your insurer may deem that your disability doesn’t rule you out from all types of work.
In terms of what isn’t covered, you won’t be able to claim for a disability which prevents you from working temporarily, rather than permanently. This may be a condition which requires a few months or years to recover from. Your family also won’t be able to claim in the event of your death, nor will you be covered if you receive a serious illness diagnosis which doesn’t permanently prevent you from working.
All coverage is subject to your insurer’s terms and conditions, so it’s important to check your PDS and with your insurer if you’re unsure of what can be covered under your policy.
The cost of your premiums will be based on a variety of individual factors and is largely determined by how different insurers assess your risk profile. The insurer will usually ask for the following information when you apply for a policy:
Life insurance can be crucial in helping your family recover financially. If you’re unable to work, you’ll need to think about how you’ll cover your expenses. Do you have enough savings and assets to be comfortable? Will you have enough money to pay for medical bills, long-term therapy and modifications to your home? If your answer to either of these questions is no, you may need TPD insurance.
Here are just some of the ways TPD insurance can help you:
You can compare life insurance policies through us for free, allowing you to come back and continue comparing at any time.
By considering life insurance policies from insurers you can trust, you can be confident in the quality of the comparison process.
By filling out a simple online quote form, you can compare offers based on their coverage, cost and more before you buy.
If you suffer from a pre-existing condition, it’s particularly important to compare policies to determine whether disability stemming from your condition can be covered. This may be automatic, available as an optional extra or excluded entirely, so it’s worthwhile comparing in this area if you find yourself in such a position.
It’s important to consider equivalent policies based on their cost. While the cheapest policy may not always present the best deal for your needs, it’s still important to compare offers so you can potentially avoid paying more than necessary for your coverage.
The older you are, the more expensive your insurance is likely to be. For this reason, TPD premiums can change over time. These are the three main types of premiums available:
It’s important to consider how much financial coverage you may need if you become permanently disabled, particularly if you’re no longer able to earn a living. Depending on your profile and the insurer you choose to purchase your policy with, you may be able to select a maximum benefit of up to $3 million to $5 million, though you’ll be able to select smaller amounts if you don’t need as much coverage.
Beyond just the amount you’re covered for, it’s important to look further into your insurer’s added benefits and extra inclusions. For example, some insurers offer inflation-proofing, which increases your covered amount in line with inflation each year.
TPD insurance may come with a 90-day waiting period from when you take out your policy before you can make a claim, but this may not be the case with all insurers. It’s important to consider different policies based on their waiting periods to determine which may be more suited to your needs.
If you’ve made a claim and it’s been approved by your insurer, you’ll receive your benefit as a one-off lump sum, potentially allowing you to pay for costly expenses such as modifications to your home or expensive equipment.
TPD Insurance is generally cheaper than other types of insurance, such as income protection, though the cost will depend on your risk profile as determined by your insurer.
You generally won’t need to pay tax on the amount you receive from your TPD policy, as these insurance payouts are typically tax-free.
If you become permanently disabled due to a covered injury or illness, you can rest assured you and your family can receive your policy’s payout to add greater financial support.
TPD insurance only covers you if you become permanently or completely incapacitated and won’t cover you if you sustain a temporary disability. In this case, income protection may be a more suitable policy to hold.
If your pre-existing condition is deemed a significant enough risk, it may be excluded from your coverage entirely (or available with additional loading).
Compare life insurance options aligned to your medical condition and profile and receive no-obligation quotes from some of Australia's leading insurers.
Disclaimer:
Savvy is partnered with Compare Club Australia Pty Ltd (AFS representative number 001279036) of Alternative Media Pty Ltd (AFS License number 486326) to provide readers with a variety of life insurance policies to compare. Savvy earns a commission from Compare Club each time a customer buys a life insurance policy via our website. We don’t arrange for products to be purchased from these brands directly, as all purchases are conducted via Compare Club.
Savvy does not compare all life insurance policies or providers currently operating in the market. Any advice presented above or on other pages is general in nature and doesn’t consider your personal or business objectives, needs or finances. It’s always important to consider whether advice is suitable for you before purchasing an insurance policy.
For any further information on the variety of insurers compared by Compare Club or how their business works, you can read their Financial Services Guide.
Quantum Savvy Pty Ltd (ABN 78 660 493 194) trades as Savvy and operates as an Authorised Credit Representative 541339 of Australian Credit Licence 414426 (AFAS Group Pty Ltd, ABN 12 134 138 686). We are one of Australia’s leading financial comparison sites and have been helping Australians make savvy decisions when it comes to their money for over a decade.
We’re partnered with lenders, insurers and other financial institutions who compensate us for business initiated through our website. We earn a commission each time a customer chooses or buys a product advertised on our site, which you can find out more about here, as well as in our credit guide for asset finance. It’s also crucial to read the terms and conditions, Product Disclosure Statement (PDS) or credit guide of our partners before signing up for your chosen product. However, the compensation we receive doesn’t impact the content written and published on our website, as our writing team exercises full editorial independence.
For more information about us and how we conduct our business, you can read our privacy policy and terms of use.
© Copyright 2024 Quantum Savvy Pty Ltd T/as Savvy. All Rights Reserved.
© Copyright 2024 Quantum Savvy Pty Ltd T/as Savvy. All Rights Reserved.
Quantum Savvy Pty Ltd (ABN 78 660 493 194) trades as Savvy and operates as an Authorised Credit Representative 541339 of Australian Credit Licence 414426 (AFAS Group Pty Ltd, ABN 12 134 138 686). We are one of Australia’s leading financial comparison sites and have been helping Australians make savvy decisions when it comes to their money for over a decade.
We’re partnered with lenders, insurers and other financial institutions who compensate us for business initiated through our website. We earn a commission each time a customer chooses or buys a product advertised on our site, which you can find out more about here, as well as in our credit guide for asset finance. It’s also crucial to read the terms and conditions, Product Disclosure Statement (PDS) or credit guide of our partners before signing up for your chosen product. However, the compensation we receive doesn’t impact the content written and published on our website, as our writing team exercises full editorial independence.
For more information about us and how we conduct our business, you can read our privacy policy and terms of use.
