Permanent Disability Insurance

What is Total Permanent Disability Insurance?

Total and Permanent Disability (TPD) Cover provides a lump sum payment should you completely lose your ability to ever work again (or carry on your normal tasks, if you are not employed), as a result of illness or injury. TPD Cover is designed to help alleviate the significant financial impact that losing an income forever would likely cause. The lump sum can help reduce debt, purchase specialised equipment, pay for home modifications, provide additional care, create an investment fund to generate on going income or to enable business ownership to be restructured, amongst other things. The purpose of the funds is entirely yours to decide.

Benefits of Total Permanent Disability Insurance

Findings from the 2001 New Zealand Disability Survey showed that one in five New Zealanders reported some level of disability – this was an increase of 41,800 since the 1996-97 survey. This is one risk that shouldn’t be treated lightly. If you lost your capacity to work due to illness or an accident, would you have the means to continue to fund your daily life and meet loan repayments? And if you were disabled for an extended period of time, what do you think would be the chances of meeting your long-term financial goals?

2 out of 5 people will be unable to work for 6 months or more because of sickness or an accident at some time between the ages of 30 and 65.

who can have Permanent Disability Insurance?

Any person over the age of 16 and up to the age of 60 can avail Total Permanent Disability Cover.

what is covered?

Disability arising due to accident or illness which results in total impairment and have Suffered the total and irreversible inability to perform at least 2 of the 5 Activities of Daily Living without the assistance of another person.

what isn’t covered?

The Insurance company will not pay any claim if a life assured, or child covered under the optional children’s benefit, suffers one of the covered conditions as a direct or indirect result of:

  • Self-inflicted harm including attempted suicide.
  • Participating in criminal activity.