How much TPD Insurance do I Need?

TPD insurance can often be a minefield of confusing jargon, complex explanations, and a tough claims process. However, it doesn’t have to be this way. What’s My Claim Worth will help you understand how much TPD insurance you should need, and why you should take that amount of insurance out. We will explain how to assess what kind of TPD insurance you will need, what costs TPD insurance will cover, and the difference between any and own TPD insurance, so that you can feel assured in your choice of TPD insurance.

Calculate your claim

Find out what your claim is worth with our smart online calculators, discuss your options with our team of claim advisors and find a lawyer that best matches you.

Calculate your claim

Understand Your Situation

The first step in working out how much TPD insurance cover you will need is to assess your financial situation. To fully determine your TPD insurance cover, you need to closely examine your personal financial situation and how your life could be affected if you were to be totally and permanently disabled. We would recommend making a spreadsheet that is totally and completely honest with your financial obligations, your income streams, and any other expenses to see how your life would be affected if your income stream was removed.

What Costs Can TPD Insurance Cover?

TPD is paid out in a lump sum, provided you can prove that you have a total and permanent disability – you are not expected to recover from your injury. There are a number of costs that TPD insurance can cover with this lump sum payment, including:

Medical care (physiotherapy, medication, hospital bills etc)
Necessary modifications to your home as a result of your injury such as the addition of ramps, lifts, and handrails, etc.
Professional nursing care
Day-to-day living expenses
Rehabilitation
Groceries
Mortgage or rental payments
Personal debt, such as credit card debt, car loan or personal loans
Children’s education.

Any or Own Occupation Cover?

When selecting your TPD insurance, you will be given the choice of any-occupation cover or own-occupation cover. These are the two distinct categories that you will have to choose from; any-occupation tends to be a cheaper cover because it is much harder to receive a claim from.

For own occupation cover, if you choose to make a claim then you will be paid out if you can no longer able to work in your chosen occupation.

For any occupation cover, you will only be covered if you cannot return to the occupation that you have the education, training, and experience for.

The type and amount of TPD cover depend on your individual circumstances. If you want to take out TPD insurance, it is vital that you take into account your own personal finances, the costs you would need it to cover, and whether you would need any or own occupation cover

If you think you have a TPD Insurance claim, What’s My Claim Worth is here to help you. Please use our claims calculator today to start your journey to your TPD claim.