There are two important forms of insurance: Income Protection and Total & Permanent Disablement cover.
Both of these insurance forms can cover the same event in some cases. However, it could be wrong to say that you only need one or the other. These two insurance coverages can work well together.
Income Protection Insurance
- is designed to protect you if you were unable to work due to injury or illness. This insurance can cover up to 75% of your income up to age 65, depending on how long you are off work.
Total & Permanent Disablement Insurance
is designed to protect you in the event of total and permanent inability to work due to injury or illness. Unlike income protection insurance that pays on a monthly basis, the total & permanent disablement insurance pays a single lump sum.
- If you were to suffer an injury or serious illness, it may take months or even years before the doctor can finally declare you unfit to work. The TPD insurance policy will only payout when the doctor gives his or her opinion that you can never return to work. Because of this, you may wait for a number of years to get the insurance money.
This is where the income protection insurance can work for you. It can cover the period that you cannot work while waiting for the doctor's diagnosis.
Give me a call to discuss this further....