Returning to work after a long-term illness or disability can be quite challenging and overwhelming. However, you and your family can be better prepared for unexpected medical costs, rehabilitation fees, and other charges thanks to Total Permanent Disablement Insurance.
What is TPD insurance?
Total Permanent Disablement policies are insurance policies that compensate you financially if you become completely and permanently injured and unable to work. Its primary function is to protect your financial stability in case of an unforeseen handicap, allowing you to meet potential bills, long-term care costs, and other financial commitments.
What does it cover?
Different insurance companies define the criteria for determining complete and permanent disability. Coverage is available for both:
Your own profession: You’re permanently unable to return to the position you had before your injury. This kind of cover is usually very expensive and you cannot get it easily.
Any profession: You will never be able to get employment again, no matter how qualified you are. This kind of cover is less expensive, but it is less likely to pay out because of its higher claim threshold.
Non-occupational cover: This involves an accident or illness that makes you unable to perform all of your standard household tasks. If you are a parent responsible for full-time domestic tasks, this is a fantastic option to consider.
How to make a TPD claim?
When working with any kind of insurance, you should consult a lawyer who can help you protect your rights in case of accidents and injuries that make you unable to perform your job and harm your quality of life. When working on your TPD claim, your lawyer will first assess your policy so that they can learn the exact criteria and definitions that TPD includes. Also, they will collect all important medical records and proof and work closely with medical experts to strengthen your case. Later on, the insurance company will review your claim and determine if they need more information. They will decide after carefully reviewing your claim, and if everything checks up, you can expect a one-time payment. If they turn down your request, you can take it to court, but be sure to consult your lawyer before you take any legal action.
Can you qualify?
If you have a TPD accident, your insurance should provide total and permanent disability benefits. Of course, you need to satisfy certain conditions, and here are the most common ones:
- You do not physically perform your duties, although you still may be employed.
- Returning to your previous job or a position where you can use your skills, education, and experience, is very improbable, if not impossible.
- At the time of your injury, you were younger than 65 years of age.
- Comprehensive medical documentation supporting the severity and persistence of your illness or injury is crucial in evaluating eligibility. Qualifying conditions often involve chronic diseases like cancer, multiple sclerosis, or cardiovascular disease, then mental health concerns, like PTSD and depression, and finally difficulties with movement or cognitive abilities as a consequence of serious physical injuries.
- You usually need to prove that you will be unable to work for at least three to six months to qualify for this type of insurance.
How much does it cost?
You should consider your salary, savings, family status, and regular costs when deciding on the right level of insurance coverage. This can all affect the quantity of your coverage and it will determine your premium as well. The possibilities for TPD coverage are versatile. You usually have two options: stepped and level. With stepped, your yearly rates will go up with your age. On the other hand, it may be more cost-effective to go with level premiums as they prove to be more stable. If your coverage rises because of indexation, your premium will also rise every year to reflect the change in the cost of living.
How long will you wait to receive a payment?
The difficulty in identifying a permanent handicap is the main reason why TPD claims can take more time. Unless your injury is very obvious, like amputation, most insurance companies will need you to be out of work for at least three months. They will usually wait until you reach ‘maximum medical improvement’ before they pay out on a TPD claim. If your symptoms have stabilized, it suggests that you no longer need medical interventions, as they will not drastically change your condition. So, it may take months, if not years, to settle some TPD cases. But don’t lose hope, as with the right legal representation and proper steps, you can speed up the process and cover your losses efficiently.
Possible exclusions
As with any other type of insurance, TPD also has certain exclusions, so you should be informed about the coverage beforehand because different companies have different regulations and limits. For example, this type of insurance does not pay out if your injury is a result of self-harm. The same goes for any long-term health issues that come out from suicidal thoughts or actions. Additionally, not all conditions impact TPD, and some insurers will not pay you if there are some pre-existing medical conditions. Moreover, if your job is riskier, then some of the benefits that your TPD insurance covers may not be available to you. Any injury, no matter how severe, that is not permanent, will not be included in your TPD insurance.
Policy renewal
As time goes by, you need to make sure that your TPD insurance coverage still fits your needs and the possible rising costs of everyday life. So, regularly renewing and reviewing your policy can help you stay safe and on the right track all the time.
Importance
If you or your family member have been permanently disabled, having this kind of insurance will put you on the safe side when it comes to your financial stability. Injuries are awful and can turn your life upside down, but this coverage will help lessen the consequences of any accident and give you much-needed peace of mind.
Finally, TPD insurance is an essential part of any comprehensive risk management plan. You never know what can happen in life and what kind of health problems you may have, so making sure you will be financially stable during some hardship is a wise decision.
