Total and permanent disability (TPD) insurance can pay a lump sum when a person meets the policy’s disability definition. The definition matters: being unable to return to one job does not automatically satisfy every policy. See Moneysmart’s TPD guide.
Read the definition first
Ask whether the policy assesses your own occupation, another occupation you are reasonably suited to, or a different set of activities. Check exclusions, waiting or assessment periods and the medical evidence required. A general article cannot determine claim eligibility.
If cover is through super
Obtain your current insurance schedule from the fund. Check the benefit amount, whether cover is active and the conditions that apply. Insurance claim requirements and the release of money from super may involve separate requirements; ask the fund to explain the process.
Before changing policies
Compare the existing and proposed definitions, exclusions, premium structure and underwriting requirements. Do not cancel existing cover on the assumption that replacement insurance has been accepted. Obtain written confirmation of any new cover.
Preparing questions for an adviser
Bring policy documents, details of insurance through super, debts and the financial commitments you want to discuss. Ask a qualified adviser how the policy interacts with other protection. This guide is general information and does not assess your medical circumstances or recommend an amount of cover.