Answered by Robert Harvey
Total & Permanent Disability (TPD) explained
Total & Permanent Disability (TPD) is one of around 40 specific medical conditions covered under Critical Illness Insurance policies. The contract will payout if the claimant is left totally and permanently incapacitated and unable to perform either their occupation or carry out a series of daily activities.
TPD will apply if the condition the claimant suffers is something irreversible and life changing and not covered elsewhere under the policy, so for example permanent physical or mental impairment caused because of a stroke, would ordinarily be covered under the stroke definition.
Understanding the different definitions
There are a number of different definitions that apply for TPD, including ‘own occupation’; ‘suited occupation’; ‘any occupation’; and ‘activities of daily living. The best definition is ‘own occupation’ which will payout if the insured is left permanently incapable of carrying out their job, however this is typically only offered to those in lower risk professions. For those in high risk occupations, one of the lesser definitions may apply, or for those not in work it will be ‘activities of daily living’, where the criteria is more stringent and the claimant must be unable to do at least three of six activities, such as walking 200 meters or climb a flight of 12 stairs, for example.
How likely it is you will need to make a claim for TDP
In reality TPD claims represent around 5% of all critical illness claims, with cancer, heart attack and stroke the most commonly claimed for conditions. Around 34% of TPD claims are rejected as well for failing to meet the terms of the definition.
To truly get comprehensive insurance cover against the risk of being able to work because of a disability it’s often better to look to Income Protection Insurance.
Frequently Asked Critical Illness Insurance Questions
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