TPD insurance can provide a lump sum benefit where the applicable definition of total and permanent disability is met. We advise on the amount of cover, policy definition, ownership structure and insurer options suited to your circumstances.
A permanent illness or injury can have a significant financial impact if it prevents you from returning to work.
Total and Permanent Disability insurance, commonly known as TPD insurance, can provide a lump sum benefit where the applicable definition of total and permanent disability in the policy is met.
The benefit can provide financial flexibility to help manage debt, household expenses, rehabilitation or treatment related costs, changes to the home or other financial commitments associated with a permanent disability.
The quality of TPD cover depends on more than the sum insured. Policy definitions, occupation, ownership structure, exclusions, underwriting requirements and premiums can differ between insurers and products.
We assess these factors alongside your existing insurance and financial circumstances before recommending an amount and structure of cover.
We consider debts, household expenses, dependants, existing assets, other insurance and the potential financial impact of a permanent disability before recommending an amount of cover.
The definition determines the circumstances that must be satisfied for a benefit to be payable. Depending on the policy and ownership structure, this may include own occupation, any occupation or another applicable TPD definition.
Occupation can affect the definitions, underwriting terms and insurer options available. We consider the nature of your work and relevant policy terms when comparing cover.
TPD insurance may be held through superannuation or outside superannuation, depending on the type of cover and your circumstances. Ownership can affect cash flow, available definitions, tax considerations and the payment of benefits.
We review existing TPD, income protection, trauma and life insurance before recommending additional or replacement cover so the different policies are considered together.
The definition in a TPD policy is an important part of the cover because it determines the circumstances that must be met for a claim to be payable.
Own occupation cover generally assesses whether you are permanently unable to work in your own occupation, subject to the precise policy definition.
Any occupation cover generally assesses whether you are permanently unable to work in an occupation for which you may be reasonably suited by education, training or experience, again subject to the policy wording.
The definitions available can depend on the insurer, occupation and whether the policy is held inside or outside superannuation. Own occupation cover may not be available to every client or through every ownership structure.
We compare the definitions and other relevant policy terms rather than assuming one structure is appropriate for every client.
TPD insurance may be available through superannuation or as personally owned cover outside superannuation.
Funding premiums through superannuation can reduce the immediate impact on household cash flow, but premiums reduce the amount remaining invested for retirement. The definitions available and the rules governing release of a benefit from superannuation also need to be considered.
Cover held outside superannuation may provide access to different policy definitions or structures, depending on the insurer and your occupation.
The appropriate ownership structure depends on your circumstances, the type of cover available and the applicable superannuation and tax rules. We consider these issues as part of the advice process rather than applying a default structure.
TPD insurance, income protection, trauma insurance and life insurance are designed to respond to different events.
TPD insurance can provide a lump sum where the applicable definition of total and permanent disability is met.
Income protection is designed to replace part of your income where illness or injury prevents you from working, subject to the policy terms.
Trauma insurance can provide a lump sum following diagnosis of a covered medical condition, while life insurance can provide a lump sum benefit on death.
Where more than one type of cover is appropriate, we consider the policies together to understand the financial risks each is intended to protect and to reduce unnecessary duplication where possible.
You may already hold TPD insurance through your superannuation, an employer or an existing personal policy.
Before recommending additional or replacement cover, we review what you already have, including the sum insured, ownership, policy definition, premiums and relevant policy terms.
Existing cover should not be cancelled simply because a new policy is available. Where replacement is recommended, the differences between the existing and proposed cover, including underwriting and policy terms, should be understood before an existing policy is cancelled.
For eligible doctors, lawyers and select professionals, we can also consider insurance arrangements available through a mutual structure.
Through relationships with participating insurers, eligible clients may be able to access insurance through a mutual that can provide a share of profits back to eligible members, subject to the mutual's terms, insurer arrangements and eligibility requirements.
Our advice remains focused on whether the insurance itself is appropriate for your needs. We consider the amount of cover, policy definitions, ownership, premiums and underwriting terms before recommending an insurance solution. Any potential profit share is an additional feature and should not be the primary reason for selecting a policy.
Eligibility, participation and any profit share are not guaranteed and can vary according to the applicable mutual, insurer and arrangement.
TPD insurance needs can change as your income, debt, occupation, family circumstances, assets and other insurance change.
We can review your cover periodically to consider whether the amount insured, ownership and policy structure remain appropriate.
If you need to make a claim, we can assist with the claims process, including helping you understand the policy requirements and communicating with the insurer as the claim progresses.
TPD insurance can provide a lump sum benefit where the applicable policy definition of total and permanent disability is met. The definition, amount of cover, ownership and policy terms should be considered when selecting cover.
Own occupation cover generally assesses whether you are permanently unable to work in your own occupation, while any occupation cover generally considers whether you are permanently unable to work in an occupation for which you may be reasonably suited by education, training or experience. The precise wording varies between policies and should be reviewed carefully.
TPD insurance can provide a lump sum where the applicable definition of total and permanent disability is met. Income protection is designed to replace part of your income while illness or injury prevents you from working, subject to the policy terms and benefit period. They protect different financial risks and may both be appropriate depending on your circumstances.
The appropriate amount depends on your circumstances rather than a standard formula. We consider debts, household expenses, dependants, existing assets, other insurance and the potential financial impact of a permanent disability before recommending an amount of cover.
Yes, some TPD insurance can be held through superannuation. The definitions available, impact of premiums on retirement savings and rules governing payment and release of benefits need to be considered. We assess whether cover should be held through superannuation, outside it or through a combination where appropriate.
TPD claims are assessed against the applicable policy definition and may require particular conditions or periods to be satisfied before a claim can be determined. The requirements vary between policies and definitions, so the relevant policy terms should be reviewed rather than assuming a standard period applies.
Yes. We can assist with the claims process, including helping you understand the policy requirements and communicating with the insurer as the claim progresses.
Private Capital Management is based at Level 26, 1 Bligh Street in the Sydney CBD. We meet with clients in person in Sydney and by video across Australia.
Meetings, document collection and insurance applications can generally be completed digitally, allowing us to provide advice and manage the underwriting process regardless of location.
Licensed and Accredited
AFSL 342880
Authorised Representative 1239545
ASIC
Qualified Tax Relevant Provider, Nathan Ide
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