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If you become disabled or have someone at your home who suffer from disabilities, then you would know how hard it is to get on with your lives and continue to work your job. However, total and permanent disability insurance caters you with a benefit when you have become permanently disables and are unlikely to ever get back to your work. Having the accurate amount of coverage for your needs can be extremely crucial; where if you feel the need to claim then too much cover can cause a nasty surprise and too much cover could mean that you’re paying more than you should be.

So what is the correct way of knowing the amount of TPD cover you would be needing? The answer solely depends on an individual’s personal circumstances, which involves five main categories that are:


1. Mortgage
2. Income
3. Debts
4. Rehabilitation and medical costs
5. Dependents

Let’s take a briefer look on each one of the categories:

• Income:

What is your present income? To what degree does your family rely on the income you have? Suppose that your income has stopped coming in, could your family be still able to cope? Would your lifestyle change? If yes, then how? You may like to take out income protection insurance, that can give you about 75% of your total income if you can’t work and for you, this is an additional level of protection. Even if you aren’t earning an income, your total and permanent disability are of great influence on your household. Moreover, if you stopped performing your key responsibilities such as cleaning, driving, and cooking, how exactly would that change yours and your family’s life? But if you get a TPD policy, you can surely have some more options and choices.

• Mortgage:

Do you have mortgage repayments? What are those? You would never like to risk losing the home you have or letting your family go through some serious financial stress in case you were not able to make mortgage repayments.

• Debts:

Are you in debt? Do you know the debts you have? Maybe it’s some car loan or credit cards? When you choose the level for your TPD cover, you need to consider all of these situations.

• Costs that come with raising children:

How independent are your children? Do they depend on you completely, or are they capable of looking after themselves financially? Will they be in need of financial assistance to get across school or university?

The age and number of children you have is a vital consideration when you choose your TPD cover.

• Rehabilitation costs:

There may be rehabilitative care and house modification that is required along with a total and permanent disability. It is, therefore, imperative to think what sort of cover you would be needing to help yourself in adjusting to your latest lifestyle after the claim.

Last but not least, there are disability companies that help you provide the suitable TPD cover you need.

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