Total & Permanent Disability Cover (or TPD,) pays a lump-sum if you are permanently disabled due to illness or accident. The money can be used for anything but is particularly useful for eliminating debt and replacing future income loss.
TPD has, in the past, been a less utilised type of cover. Previously, a TPD’s policy wording was designed to cater for only the most severe cases of disability, which made it more unlikely for people to be eligible to claim on this benefit. Now, policy wording has sharpened up, and TPD has settled into a much more useful position. Often, TPD is used as a lump-sum to pay off debt and help cope with unforeseen expenses resulting from an event that permanently stops you from working. TPD can be taken out as a stand alone cover and used for such things as replacing lost income, or they can be attached to your life insurance to cover debt.
If you’d like to get more information about Total & Permanent Disability Cover, then give us a call on 0800 222 511 and we’ll post you out a pack.