Total & Permanent Disability

Total and Permanent Disablement insurance is normally an optional extra cover on a life policy. It aims to provide a lump sum of money should a person suffer an illness or injury which totally and permanently incapacitates them from working.

‘Own Occupation’ definition:

Payable by reason of accident or injury as to render you likely never again to be engaged in your own occupation (definition may vary from company to company -please refer to the Product Disclosure Statement).

‘Any Occupation’ definition:

Payable by reason of accident or injury as to render you likely never again to be engaged in any gainful business, profession or occupation for which you are reasonably suited by your education, training or experience (definition may vary from company to company - please refer to the Product Disclosure Statement).

The function of Total and Permanent Disablement is to do the following in the event of disability:

• Cover the mortgage or pay other debts
• Protect business against loss of sales and profits
• Maintain business lines of credit
• Provide an income stream
• Provide money for home modification

Areas that will need to be addressed are:

• Should the policy be held inside or outside of super?
• Are there any policy exclusions?
• Will the premiums be tax deductible?
• Will there be any tax payable in the event of a claim?
• Should you pay stepped or level premiums?

Contact us for an obligation free quote.