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What Is Total Permanent Disability Insurance?

Updated: Nov 30, 2021

A permanent injury or illness can make it difficult or impossible to return to work. TPD insurance can provide a financial safety net to help support you and your family, and pay for medical and rehabilitation costs.

I believe all of us have life insurance or Personal Accident Coverage. And do you know that your life insurance and your Personal Accident come with a coverage called “TOTAL PERMANENT DISABILITY” or known as TPD? So, What does TPD covers?

Well, TPD insurance pays a lump sum if you become totally and permanently disabled because of illness or injury.

What is the definition of TPD?

It means permanent, total, and continuous disablement which wholly prevents the Insured from ever engaging in any gainful work, occupation, or business for which he is reasonably qualified or fitted by knowledge, training, or experience. While the Insured is not engaging in any gainful work, occupation, or business at the time of Injury, the Insured shall only be deemed permanently and totally disabled if he sustains Injury causing a permanent inability to perform three (3) or more Activities of Daily Living as defined either with or without the use of mechanical equipment, special devices or other aids and adaptations in use for disabled persons.

Ok. Simple explanation. TPD is when a person is unable to ever work again in any job suited to his or her education, training, or experience.

So, how much do you need to cover on TPD?

When deciding if you need TPD insurance, and how much, think about the expenses you'll need to cover if you were permanently disabled and unable to work.

These could include

• living expenses for you and your family

• repaying debts such as a mortgage or credit card

• medical and rehabilitation costs

• savings you want for retirement

Also, think about what you have that could help pay for these costs. This could include:

• private health insurance that can help pay for medical expenses

• if you have trauma or income protection insurance, that can help replace lost income. You may hold these insurances through your super fund

• any savings or investment you could sell

• what support from family or friends may be available

The gap between the amount you have and the amount you'll need can be a guide as to how much TPD cover you may need. For your information, normally our life insurance is equivalent to our TPD coverage. For example, I am getting a Life Insurance of RM400k then my TPD coverage will be RM400K as well. Simple as that.

OK, that’s all from me today. I hope this will help you to have a clearer picture of what is TPD coverage and how it will help you during the time of need. If you need help to review your current insurance coverage and planning to upgrade your coverage feel free to give us a call. We are happy to help you. Thanks and Have a nice day.

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