Need a Mortgage Broker for Disability Insurance?

Total & Permanent Disability Insurance provides a lump-sum payment in the event that the person insured becomes totally or permanently disabled.

Unlike Life Insurance, Disability Insurance is payable without the insured person actually dying. It is designed to help discharge any outstanding debts you might have as well as help with your ongoing living expenses and help pay for medical costs while you are disabled.

Please call First Choice Mortgage Brokers to discuss your Disability Insurance opportunities and for any assistance in accessing the Disability Insurance application process.

Difference Between Income Protection and Total & Permanent Disability Insurance

The main difference between TPD and income protection insurance is that TPD pays out a lump sum. In contrast, Income Protection (IP) provides an income on the basis of you being unable to do your own job for a specified waiting period and until you can go back to work or until the end of your benefit period.

Types of Total & Permanent
Disability Insurance

Currently, in Australia, there are four main types of total and permanent disability insurance available. These include:

Own Occupation

Own Occupation Disability Insurance is where the insured is unlikely to ever work in their own occupation for the rest of their life.

Any Occupation

Any Occupation Disability Insurance is where the insured is unlikely to work in their profession, business or similar occupation.

Home Duties

Home Duties Disability Insurance is where the insured is unable to engage in any normal domestic duties for a continuous period of at least three months.

Modified

Modified Disability Insurance is where the insured is permanently and totally unable to perform without physical help from someone else or suffers cognitive impairment requiring permanent and constant supervision and has been disabled for three preceding months and will continue to be disabled in the future.

Total & Permanent Disability Insurance FAQs

What is Considered a Total and Permanent Disability?

A total disability is considered any mind or body impairment that makes it impossible to gain substantial employment. A permanent disability refers to an impairment that is likely to continue throughout the person’s entire life.

Often this term is used in the field of workers’ compensation to describe any long-term impairment that occurs after a patient has been healed and given time to recover (reached maximum medical improvement). Some examples of total and permanent disabilities include suffering from:

  • Blindness
  • Loss of Use of Limbs
  • Loss of Use of a Single Limb
  • Loss of Sight in One Eye

What is Not Covered by Total and Permanent Disability Insurance?

It is important to assess what cover is most suitable to you before purchasing total and permanent disability insurance, as different policies cover different incidents. For example, typically, you might not be covered by TPD for some illnesses, sports injuries or self-inflicted injuries.

What are the Premiums Associated with Total and Permanent Disability Insurance?

Generally, you get a choice between two premium options:

  • Stepped Premiums which usually rises each year, you have the scheme, as your age increases, and so does your likelihood of making a claim.
  • Level Premiums where the price may be higher at the start but will not rise at the same rate as stepped premiums.

If you intend on keeping your policy for an extended period of time, a level premium is most likely the best idea. However, it is essential to remember that the insurer will also raise your premiums from time to time as they review their insurance rates.

Can Multiple People Be Insured Under a Single Total and Permanent Disability Insurance?

Yes, depending on the policy and provider, you may be eligible to cover more than one person on the same policy. A married couple, for example, may opt to insure both of their lives under a single policy. If you add a second person to your account, you might be entitled to a percentage or flat rate rebate on your premiums, depending on the insurer.

Speak to a Mortgage Broker

You can make an appointment with a First Choice Mortgage Broker consultants by calling 1800 111 455.

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