No one ever wants to think about the possibility of becoming disabled, but it’s a very real risk. According to the Social Security Administration, one in four 20-year-olds will become disabled before they reach retirement age. And if you’re a parent, the stakes are even higher. Not only do you have to worry about yourself, but you have to worry about your children as well. That’s why total and permanent disability cover is so important.
Total and permanent disability cover (TPD) is a type of insurance that provides financial protection in the event that you become disabled and are unable to work. If you have TPD cover, your insurer will pay out a lump sum benefit that can be used to cover medical expenses, make up for lost income, or anything else you need.
How TPD Cover Works
There are two main types of TPD cover: own occupation and any occupation. Own occupation cover pays out a benefit if you become disabled and are unable to work in your own occupation. Any occupation cover pays out a benefit if you become disabled and are unable to work in any occupation.
Own occupation cover is generally more expensive than any occupation cover because it has a lower definition of disability. However, it also provides greater financial protection in the event that you become disabled.
Total and permanent disability cover should be an integral part of your financial security planning—especially if you’re a parent. No one ever wants to think about becoming disabled, but it’s a very real risk. If you have TPD cover, you’ll have peace of mind knowing that you and your family will be taken care of financially if the worst happens.
Total and permanent disability cover is an important type of insurance that provides financial protection in the event that you become disabled and are unable to work. If you’re a parent, TPD cover is even more important because you have to worry about your children as well as yourself. While no one ever wants to think about becoming disabled, it’s a very real risk—and TPD cover can help ensure that you and your family are taken care of financially if the worst happens.