|
This form of insurance is normally available as an optional benefit on a Life Insurance.
The benefit is a lump sum paid if you become Totally and Permanently Disabled. You must be disabled to such an extent that you are unlikely to ever engage in:
- Your own occupation OR
- Any occupation
The first definition (Own Occupation) is by far a more beneficial policy to be assessed under, however it is likely to be the most expensive.
The second definition (Any Occupation) is much more restrictive in that it includes ¡¥any occupation¡¦ to which you may have been suited by education, training and/or experience.
Many of the features of Life Insurance will apply equally to TPD. The sum insured is payable in the event of TPD and is generally restricted to being no more than the death benefit.
The lump sum could be used to help pay for debt reduction/elimination, income generation and all other facets of permanent disablement. You cannot have TPD on its own, it has to be part of a Life Insurance policy.
Is it tax-deductible? Like Life Insurance, if you are self-employed TPD Insurance can be set-up so it's tax-deductible, only as part of a Life Insurance policy.
For more information call Greg and the Lifestyle Money team on 02 9957 1962.
|
