Total & Permanent Disability Insurance – Ensuring Life Can Go On

Imagine if something happened and you were never able to work again.

While we might all joke about the fact that it would be nice to finally get a holiday, there is, of course, a serious side to this scenario.

Because if you’re rendered permanently unable to work due to a disabling sickness or injury, you need to know how you’ll support yourself and your family, and pay your medical costs.

If you’ve structured your insurances appropriately, then you’ll know that that’s where total and permanent disability insurance (“TPD”) comes in.

Total and permanent disability insurance pays you money if you’re ever disabled and unable to work again for the remainder of your life. Examples of scenarios where you might claim TPD include being paralysed in a motor vehicle accident, becoming disabled after experiencing cancer, or developing a mental illness that prevents you from returning to work.

If you were ever disabled and unable to work again, a well-structured total and permanent disability policy would pay you the money you and your family need for life to continue.

TPD can be structured so that the money you receive will cover your medical expenses, pay down your mortgage or other debts, purchase mobility aids, fund modifications to your home, pay for your children’s education, and provide your family with a regular income.

If you could comfortably afford these expenses, you probably don’t need TPD. But if not, it’s an important insurance to consider for protecting your family against worst-case scenarios.

Total and permanent disability insurance policies come in all sorts of shapes and sizes. Your TPD can be held in or out of your superannuation. However, some new policies can’t be held in super, and payouts from policies in super attract tax.

Some policies pay if you’re unable to do any job. Others pay if you can’t do your usual job, while others pay if you can’t perform specified daily activities such as bathing unassisted. Regardless of which you choose, most policies have a 90-day wait before they pay.

Frankly, it’s pretty complicated. Which is why when it comes to selecting a TPD policy, it’s important to consult a qualified financial planner. At K2 Wealth, our Brisbane financial planner can identify the best policy for you, both from a tax and an affordability perspective. Here are some testimonials from people we’ve helped do just that.

You can’t control whether you ever become disabled and permanently unable to work. What you can control, however, is what happens to you and your family if this ever occurs. That’s why TPD is so important – because it gives certainty for “just in case” scenarios.

If you’d like to discuss how TPD insurance can protect your family, we’d love to help. Contact K2 Wealth today on (07) 3368 2002 or drop us a line.