Imagine the difference a lump sum payout could make in the event of permanent disability

Total permanent disablement insurance gives you financial freedom in the event of a permanent disability caused by accident or illness.

We all take our good health for granted, but what would happen if you couldn't work again?

Total permanent disablement insurance gives you the financial freedom to pay for whatever you need, such as:

• Paying off your mortgage
• Improving access to your home
• Providing for your family
• Paying for your ongoing care

We all recognise that our early death would devastate our family and leave them financially vulnerable. However, from a financial viewpoint, a permanent disablement could not only take away your earning potential, but also leave you with additional costs for treatment, care, transportation and housing.

Contact IronOak for expert advice on total permanent disablement insurance, and recommendations to suit both your needs and budget.

What's the difference between income protection, trauma cover and total permanent disablement (TPD)?

The difference between these benefits lies in how they are paid, their severity and the relative risks and consequences.

Income protection pays a monthly benefit in the event that illness or injury prevents someone from working. Trauma and TPD pay a lump sum of money on diagnosis of a specified condition or situation.

In terms of severity, an income protection claim may only last a few weeks or months, with a full return to work. A trauma condition is expected to have a more significant impact on health and ability to work e.g. a cancer diagnosis or major heart attack, but recovery to some extent is still expected. However, a TPD diagnosis means never working again, while still incurring significant care and living costs. In practice, a claim could start out with a trauma condition and payout, resulting in an ongoing income protection claim that then might lead to a total and permanent disablement.

For men aged 30-65, the risk of being off work for six months or more is about the same as the risk of a trauma claim, that is 40%. For women the trauma risk is a little bit less (30%) but still quite high. The risk of becoming totally and permanently disabled is much less but the consequences are vastly more serious.

In order to decide which benefits, and how much of each to have, it is important to discuss your individual circumstances with an advisor. Depending on your income, income disparity with partner, gender, smoking status, age, health, goals and budget, a plan can be tailored to meet your needs.