What is TPD (Total and Permanent Disability) insurance?

TPD insurance is a type of insurance policy that provides a lump sum payment if you become totally and permanently disabled due to illness or injury and are unable to work. The insurance is designed to help replace lost income and cover ongoing living expenses, medical costs, rehabilitation, debt repayments, and modifications to your home or vehicle if needed. TPD cover can be purchased as a standalone policy or bundled with life insurance, and is commonly included in superannuation funds. The benefit amount is typically paid as a one-time lump sum, which can range from tens of thousands to millions of dollars depending on your coverage level. Unlike income protection insurance which provides regular payments while you're temporarily unable to work, TPD insurance is specifically for permanent disabilities where you're unlikely to ever return to work.