Total And Permanent Disability (TPD)
Total and Permanent Disability (TPD) insurance provides you with a one off lump sum payment if you are unable to work due to a permanent disability. The lump sum is designed to help you modify your lifestyle.
There are two definitions within the Total and Permanent Disability cover: “Any” or “Own” Occupation.
Own Occupation
Is defined as suffering a permanent disablement that disallows you to work in your own occupation for which you are suited by training, education, or experience.
In order to meet the payment criteria (subject to the provider) you will be unable to perform at least two of the following activities without the physical assistance of someone else:
- Bathing
- Dressing
- Eating/Drinking
- Personal Hygiene
- Moving from place to place by walking, in a wheelchair, or with a walking aid.
Total Permanent Disability (TPD) Insurance is designed to help in the worst of times. It may be uncomfortable to think about the ‘what ifs’ in life but it could be overwhelming if you’re not prepared.
The TPD lump sum payment can help with costs when you are permanently disabled. Costs such as rehabilitation, on-going medical treatment, general living expenses (including changes made around the home to accommodate the disability), mortgage repayments, outstanding debts, and of course your family’s ability to survive either without your income or on a lower income.
Any Occupation
Is defined as being so incapacitated that it is unlikely you will ever be able to return to work. You are paid remuneration based on the amount of cover you have chosen to take out based on your own occupation or any other occupation/gainful employment for which you are reasonably suited by education, training, or experience.
Deciphering each provider and their plan is what Wright Financial does best. For us, it’s about our clients and having them make an informed decision. With over 30 years combined industry experience, our advisers will explain in simple terms the definitions of your policy wordings and just what this definition means for you and your personal situation.
Contact us today for free no obligation financial advice.
Compare Insurance Provider Benefits
The following information is provided as a guide with which to compare quality Total Permanent Disability Insurance providers available in NZ. Here we identify similarities and subtle unique differences specific to each insurance provider, as per their brochures, giving you the opportunity to tell us why this provider is right for you.
Partners Life
PARTIAL PERMANENT DISABILITY BENEFIT
Pays a partial benefit of up to $75,000 if you suffer permanent loss of the use of one limb or sight in one eye.
SPECIAL EVENTS INCREASES
Life-changing events can result in greater financial responsibilities. These special events such as having a child, getting married, purchasing a home, etc. allow you to increase your cover without medical underwriting.
WORLDWIDE COVER
Valid wherever you may be in the world.
INFLATION PROTECTION
Your TPD Cover will automatically increase by inflation each year. This ensures your TPD Cover can continue to deliver the same real value to you when you first purchased it.
About Partners Life:
Partners Life is a relatively new company to the Life Insurance market in New Zealand (approximately 6 years).
We understand how difficult and stressful it can be when it comes time to submit a claim and at Partners Life there are no surprises or shocks. We have a philosophy embedded into the fabric of the company that all genuine claims are paid as quickly and with as much empathy as possible.
Partners Life has an A.M. Best secure rating of B++ (Good)*.
* Given by A.M. Best Inc., an approved insurance rating agency.
Sovereign
PARTIAL PERMANENT DISABILITY BENEFIT
Pays a benefit of 25% of your TPD sum assured up to a value of $25,000 if you suffer permanent loss of the use of one limb or one eye.
TOTAL PERMANENT DISABLEMENT WAIVER OF WAITING PERIOD
Usually, there is a three-month waiting period before a Total Permanent Disablement claim is paid. However, if your medical condition enables an assessment to be made immediately, then this waiting period may be waived.
WORLDWIDE COVER
Provides cover anywhere in the world, 24 hours a day.
SPECIAL EVENTS INCREASE FACILITY
Life-changing events can result in greater financial responsibilities. These special events such as having a child, getting married, purchasing a home, etc. allow you to increase your cover without medical underwriting.
WAIVER OF PREMIUM
Removes the burden of paying premiums when you are unable to work due to disability.
About Sovereign:
After taking care of New Zealanders for the past 25 years, Sovereign is turning insurance on its head by dedicating ourselves to helping you take charge of your health.
Sovereign has an A.M. Best financial strength rating of A+ (Superior)*.
* Given by A.M. Best Inc., an approved insurance rating agency.
AIA
PARTIAL PERMANENT DISABILITY BENEFIT
Payable under certain circumstances (loss of sight in one eye, or loss of use of one hand or one foot); the lesser of 25% of sum assured or $75,000.
SPECIAL EVENTS BENEFIT
If requested before age 65 years, and within 12 months of one of AIA's listed special events, the sum assured may be increased without the need for further health assessment.
FUNERAL BENEFIT
A lump sum of $12,500 payable towards funeral expenses if you die during the term of your policy (stand-alone TPD Cover only).
ASSISTANCE BENEFIT
A payment of $7,500 may apply, for covering the cost of specialist equipment or house alterations.
INFLATION PROTECTION
Ensures your benefit keeps pace with inflation.
GUARANTEED PASS BACK OF ENHACEMENTS
Where policy wording improvements apply in the future (that do not impact your premiums) these improvements will apply to your policy from the date of the change.
About AIA:
We’ve been helping New Zealanders since 1981. And as part of the AIA Group, one of the largest life insurance companies in the Asia Pacific region, our customers have the assurance that we’ll always be there for them when it counts, whatever life may bring.
AIA has a Standard & Poor’s (Australia) Pty Limited financial strength rating of AA- (Very Strong).
* Given by Standard & Poor’s (Australia) Pty Limited, one of the world’s leading providers of independent credit risk research across industries and benchmarks, asset classes and geographies.
Asteron Life
PARTIAL PERMANENT DISABILITY BENEFIT
Will pay a partial benefit of up to $75,000 if you suffer permanent loss of the use of one limb or sight in one eye.
UNEMPLOYMENT COVER
A good low-cost option if you are not in paid employment, defaulting to ‘Any’ Occupation. Modified TPD applies if you permanently lose the use of your limbs or sight, are unable to perform daily living duties, or lose your ability to think or concentrate.
PREMIUM HOLIDAY OPTION
You may opt to suspend cover & premiums in the event of redundancy, bankruptcy, tertiary studies, or overseas travel. The cover can be reinstated without evidence of health within one year from the start of this option. The Premium Holiday Option may be used only once in the lifetime of the policy.
INFLATION PROTECTION
To ensure your benefit keeps pace with inflation, you can choose to have your policy cover increase each year by the greater of 2% or the CPI, regardless of health.
SPECIAL EVENTS INCREASE FACILITY
Life-changing events can result in greater financial responsibilities. These special events such as having a child, getting married, purchasing a home, etc. allow you to increase your cover without medical underwriting.
About Asteron Life:
To Asteron Life, life insurance is all about getting the most out of today – knowing that if things go wrong, you’ve got plans in place. Asteron Life has been named New Zealand’s Best Life Insurance Company and Women’s Employer of the Year for 2015.
Asteron Life has a Standard & Poor’s financial strength rating of A+ (Strong).
* Given by Standard & Poor’s, one of the world’s leading providers of independent credit risk research across industries and benchmarks, asset classes and geographies.
OnePath
PARTIAL PERMANENT DISABILITY BENEFIT
If you suffer the loss of a single limb or the sight in one eye, OnePath will pay a partial payment of 25% of the amount insured (up to $500,000) recognising the impact these conditions can have on your lifestyle.
UNEMPLOYMENT OR HOMEMAKER COVER
Pays you the amount insured (up to $3 million) if you qualify under the Homemaker definition or if you qualify under the Non-working TPD definition.
INCLUDED FUTURE INSURABILITY OPTION
A built-in feature that allows you to increase your level of cover once a year up to certain limits (without any medical tests) if certain major changes happen in your life such as starting a business, having a child, or taking out or increasing your mortgage.
About OnePath:
We’ve been paying claims for over 12 years and throughout that time, we have remained committed to our philosophy of doing what’s right by our customers every time. That means we look for ways to pay claims – not how to get out of paying claims.
OnePath has a Standard & Poor’s (Australia) Pty Limited financial strength rating of AA- (Very Strong).
* Given by Standard & Poor’s (Australia) Pty Limited, one of the world’s leading providers of independent credit risk research across industries and benchmarks, asset classes and geographies.
Contact us today for free no obligation financial advice.