Total Permanent Disability Insurance for Australians

Total Permanent Disability Insurance for Australians

Most people who go out to work each day don’t ever think about the possible dangers in their workplace. Those people who get injured at work are often left on their own.

Don’t be one of them, and learn about Total Permanent Disability Insurance. This type of insurance helps you to get assistance when an unexpected disability happens that causes you to permanently stop you from performing your usual work.

What is Total Permanent Disability Insurance?

This insurance should be an available option for an employee in which you get financial monthly assistance in case an employee is permanently disabled. Insurance coverages may vary but the point is financial assistance is provided for people who are diagnosed as permanently disabled.

In case a person can still perform his work on a regular basis, and not being prevented to return from his job, unfortunately they cannot avail this type of insurance.

Types of Disability Insurance

You may think this type of insurance is going to fall into a single category, but this is not the case. With most insurance companies who are offering this type of coverage, you will find a common theme that includes three different types of insurance plans. The insurance is generally going to fall under the any occupation category or the own category occupation.

Any Occupation Disability Insurance

It is a type of disability insurance that will cover any type of occupation.

This insurance has different limitations on how you can use the lump sum of money that you can receive from it, as it typically covers a disability if you cannot return to performing your work.

However, if you are able to be re-trained, put into a new job, or even work from home, the chances are that you will not get any payments from the disability insurance that you have in place.

With any occupation insurance it is generally seen as an attachment onto the life insurance plans that people have. And some are added in their superannuation plan.

Own Occupation Plan

This plan is not as rigid like the coverage from total permanent disability. Instead, this plan pays out a lump sum to people that are unable to return to the same type of work after they have been diagnosed as disabled.

This is completely different from any occupation insurance plans as it pays out the policy holder upon the physician’s diagnosis that you are unable to return or perform your job.

A key point to consider with Own Occupation Plan, it can be availed separately. And they can also be part of your superannuation plan. As part of superannuation plan, usually you will not be able to avail the settlement amount for the disability coverage because it is paid into your superannuation plan.

In some cases, Own Occupation Plan is going to be paid directly to you, assuming that you have meet the insurance company’s requirements. As mentioned Own Occupation Plan when qualified are paid in lump sum giving you financial assistance in one pay.

Home Duties Insurance

This type of insurance plan applies to what everyone calls “Homemakers”. And being unable to perform their normal household duties because of disability are also qualified to get financial assistance from Home Duties Insurance.

Benefits of Disability Insurance

Having any of these types of insurance will help you pay your bills once diagnosed as disabled. The downside is that insurances can cost you money, but it is well worth the cost for the coverage that you will be getting from the plan should anything happen. Different plans offer different payment options so do your research to find the best plan for you.

While the plans do cost money and typically go up each year, you may find different factors make it possible for your plan to qualify for a premium freeze. This means you will be paying the same premium as before and this will help you in saving quite a bit of money on the payment amount each month.

Raising the limits of the lump sum payout is something that people tend to find beneficial. When you sign up for one of these plans, you will normally sign up for the amount of money you would need based on your age, life expectancy and the current cost of items. As we all know this changes each year and often goes up at a rate higher than what is anticipated. However, a lot of these plans take this into account and instead of requiring you to get a new plan each year, it will increase the payout based on any rises in inflation.

Losing your independence is a terrible thing to happen. It can often mean that you become dependent on someone else to provide your care for the rest of your life. This costs money so make sure this is included or at least factored into any policy you are considering.

Financial advice and planning is something else you need to consider. When these plans mature or cash out, the amount of money you get can be high so you need to ensure you seek the necessary advice to manage it properly.

Coverage for travelling is something else you will enjoy with these plans. Most of the time, the injuries that disable you happen at work. However, this is not always the case and sometimes they can happen when you are travelling. With the worldwide travel policy you have cover for disability even if it did not occur when you were at home or working.

Partial Disability Options

Sometimes you will find the injuries you have are not going to permanently disable you. When this happens you may find the insurance plan you have in place provides a Partial Disability Option. This option means you are not fully disabled and you can return to your regular job. However, you will notice this type of plan will help you pay for some of the treatments you need or pay out for the disability that you have.

When you are filing for a partial disability you have to meet some very specific criteria. The payment will be a percentage of the total payment amount, and covers a permanent injury. The typical qualifying injuries, while not permanently stopping people from working, are significant and will keep people from having the same quality of life they had before.

When you are looking at these plans, look up HamiltonBrokers.com.au, the leading insurance broker in ACT, for professional help in getting the insurance coverage you need.

This information may be regarded as general advice. That is, your personal objectives, needs or financial situations were not taken into account when preparing this information. Accordingly, you should consider the appropriateness of any general advice we have given you, having regard to your own objectives, financial situation and needs before acting on it.