TPD Insurance Case Study
We all know how life insurance can protect your family in the event of your death, but what happens if you survive, only to be left totally and permanently disabled?
If you suffer a serious injury or illness that results in your death, your life insurance payout should provide sufficient funds to look after your family.
Of course you and your family would be much happier for you to survive, but if the injury or illness leaves you unable to work and potentially needing 24 hour ongoing care, the financial strain can be huge and your life insurance won’t be of any use.
This is where TPD insurance steps in. TPD stands for total and permanent disability, and the insurance is designed to protect you financially if you suffer an event that leaves you unlikely to ever return to work in the opinion of a medical professional.
To demonstrate the effectiveness of TPD insurance and the way that it can change lives, we will look at the example of a young man from Sydney who has benefited from holding the right cover. Note that the names and some minor details have been changed for privacy reasons.
Mark was a 31 year old IT consultant from Sydney. Married with two young daughters, Mark lived a happy, comfortable and healthy life.
A keen cyclist, Mark went riding every morning before work. One particular morning Mark was hit by a 4WD vehicle and ended up in hospital.
Upon waking, he was told by the doctor that he had suffered very serious neck and spinal injuries and may never be able to breathe unassisted again, let alone walk. Mark was now a quadriplegic.
Mark’s wife called their financial adviser who also happened to be a family friend. Thankfully Mark had taken his friend’s advice and had a TPD insurance policy in place for $1.4 million. Once the claim was completed Mark had the full claim amount transferred into his savings account.
Without TPD insurance in place, Mark and his family would have experienced serious difficulties in covering their mortgage and maintaining their lifestyle. Instead, they now had sufficient funds to keep pushing forward.
Aside from being confined to an electric wheelchair, Mark was a healthy young man and was certainly not ready to give up on leading a normal life. Using part of the proceeds from the TPD insurance, he and his family travelled to the USA where Mark underwent intensive rehabilitation in an effort to walk again.
The rehabilitation was extremely expensive, and without TPD insurance it would have been completely out of the question. It was the type of advanced rehabilitation that is simply not covered by private healthcare.
Thanks to the intensive rehabilitation and Mark’s very strong will and determination, he is slowly starting to regain the use of his legs and can now walk very short distances unaided.
Without TPD insurance Mark and his family would never have been able to afford the hundreds of thousands of dollars required for the rehabilitation, but thanks to his TPD insurance he is well on his way to enjoying a better quality of life than would have been expected.
The good news with TPD insurance is that even if Mark can start working again, his TPD insurance claim will not be affected. This removes any deterrent to getting himself back into working condition.
This article is about TPD insurance and is general information only. It should not however be treated as factual, as personal advice or be the basis of purchasing any insurance policy. Before deciding on an insurance policy read the PDS carefully and talk to a licensed insurance agent if you need further assistance. MoneyBuddy does not recommend insurance products or provide personal advice in regards to insurance products.