There are many reasons that a person would take up TPD insurance: to reduce debt, to replace income, or perhaps to pay for health care and house changes as a result of total and permanent disablement.

 

One option is ‘Own Occupation TPD’, which means that should you be unable to return to your usual occupation, you would be paid a lump sum. An example of this is a plumber who is unable to return to work, but is able to work in a plumbing office-based job.

 

The second option would be ‘any occupation TPD’. In this case, you can claim your lump sum if you are unable to return to any job to which you are reasonably suited by training and/or experience. For example, if you are a plumber and can no longer work as one, but you can work in a plumbing company office, you would not be paid.