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Disability Insurance
Disability insurance - also called Total & Permanent Disablement (or TPD), covers sickness and accident which is determined by doctors to likely be permanent, resulting in a reduced ability to work, or in more serious cases, the person is deemed to be not likely able to work again.
What does it do?
With most sickness or injuries, a person is able to return back to their "normal" job after a recovery period. But some sicknesses or injuries are so severe or life changing that return to normal work is considered unlikely or impossible. Disability Insurance (TPD) provides a lump sum payment to assist with long term financial needs, which could include funds to pay for home care, nursing, or home alterations.
Why have it?
Employment contracts do not normally provide sick pay for long term illness. ACC may or may not be involved - particularly if illnesses such as Stroke or Disease are involved. Savings or Government benefits may not provide the desired long term lifestyle. A TPD lump sum insurance payment can help to bridge the financial gap needed to provide the lifestyle and support needed with serious disablement.
Options
- Own Occupation Cover - means possibly able to work, but not work in the usual occupation they had before the event occurred.
- Any Occupation Cover - means not able to work in Any occupation that is reasonably suited by education, training, or experience.
- Automatic Inflation Adjusted cover
- Cover as an early payment of Life Insurance cover (accelerated).
- Buy back cover after a claim without medicals.
- Guaranteed future increase to cover without medicals.
- Special Events Increases: Marriage, Mortgage, Birth, also others.
Premiums
Disability insurance premiums are based on: Age, Male/Female, Health history, Smoker/Non-smoker, Occupation, and Pastimes. Most people take out Disability Insurance as an early payment of the life cover (accelerated) but stand alone cover is also available. Most people have premiums that increase each year by age, but level premium cover is also available with increased initial premiums, but reduced longer term premiums for the life of the policy. Premiums are dependent of levels of cover and options selected.