What is a benefit period in TPD insurance?

Unlike income protection insurance which has defined benefit periods (how long it pays), TPD insurance benefit periods work differently because it's a lump sum payment rather than ongoing benefits. However, there are time-related aspects of TPD policies to understand. The policy term is the period during which your coverage is active - many TPD policies provide coverage until age 65 or 70, after which the policy expires as you reach retirement age. Some policies offer coverage to age 75. The waiting period (typically 3-6 months) is the time you must be continuously disabled before you can lodge a claim - this is different from a benefit period. Once a TPD claim is paid, the policy typically terminates - you receive a one-time lump sum and the policy ends. If you have TPD linked to life insurance, claiming TPD usually reduces your life insurance by the same amount or cancels it entirely. Some policies include a 'recurrent disability' provision, though this is rare in TPD - if you recover and return to work, then become disabled again within a specified period, it may be treated as the same claim. The key difference from income protection is that TPD provides a single lump sum payment, not periodic payments over time. Once paid, you're responsible for managing those funds for the rest of your life to cover ongoing expenses.