Total & Permanent Disablement (TPD) Insurance

The purpose of this insurance policy will ensure their family living standards are maintained and assets of the family protected in the event of serious accident or illness, where the surviving partner is unable to work in the future and the lump sum payment would be similar to the needs under a term life policy plus medical and carer costs.

TPD provides a lump sum benefit in the event that you become totally and permanently disabled. Payment for TPD may be made if the following conditions of the policy are met:

  • If you are unlikely to work again in the future.
  • If you are unable to perform basic daily living activities.

The possibility of becoming totally and permanently disabled in your lifetime is more likely than many people realise. The following table summarises the probably of Death and/or TPD for a 35 years old male or female before they turn 65 years old (from MLC Personal Risk Calculator which is based on Australian Life Tables 2003-05 with MLC’s TPD experience).

Death & TPD Death TPD
Male 35yrs old 21% 11% 10%
Female 35yrs old 13% 7% 6%


That is, for a 35 year old male you have a 1/10 chance of being totally and permanently disabled before you turn 65. On top of this you would have an 11% chance of dying before age 65.

Adequate TPD insurance can help you maintain your quality of life in the unfortunate event of total and permanent disability.
Insurance Benefits can be used in many ways, in addition to the average family’s living expenses listed under Life insurance, such as to help pay for recovery and rehabilitation costs, or to refit your home if necessary. TPD insurance can also allow a partner or family member to reduce their work hours to care for the disabled person or to pay a professional carer, and provide funds to be used as an ongoing income stream in the future.

When you are borrowing or you have existing debts you should consider your insurance needs for you and your family.

If you would like more information, please Contact Us.