There is no guarantee of health and life in general. Therefore, it is better to stay prepared to a certain extent for certain unforeseen disasters, using a competent health insurance plan. In this respect, we can mention the importance of accidental coverage in health insurance. However, in this article, we will specifically discuss TPD or total permanent disability insurance.
TPD is a particular state in which a concerned individual gets affected by any injury or ailment and becomes incapable of working. It can be loss of eyesight, speech or loss of limbs. Choosing TPD cover can come in handy under such adverse circumstances. This sort of health insurance cover provides coverage for the cost of living for the person’s family who has been disabled. This plan can be purchased in the name of a single individual or for a group.
From the above discussion, it is evident that the importance and relevance of total permanent disability insurance are extreme. Some of the most highlighted benefits of this insurance cover are as follows:
Financial security for a secure life
TPD insurance cover offers financial security to the policyholder and his/her family during difficult times when he/she becomes incapable of earning properly due to any disability. This sort of cover acts as a protective shield and helps you to maintain a standard lifestyle without much difficulty. Generally, the claim amount is a fixed percentage of the average wage of the concerned insurance holder.
Compensation for treatment costs
For any disabled individual, medical bills and treatment costs are an inevitable part. The assured sum from TPD cover may be easily utilised for fulfilling such medical requirements.
Undisturbed education for children
A disability of a family member may act as a major hindrance to children’s education and future. However, it is not so with total permanent disability cover. With the assured sum, you can continue with your child’s education without worries.
Buying a total permanent disability cover is highly essential to save yourself and your beloved family members against odd, rainy days when you become incapable of earning. However, in this context, you must note that although there are a host of TPD covers available, however, not all of them are equally beneficial or suitable with a broad scope of coverage. However, according to experts, it is better to opt for a plan with a broad coverage span, because it is worth utilising during rainy days despite its comparatively higher premium rate.
The terms and conditions of the total permanent disability coverage differ from one company to another. Therefore, it is essential to read and understand the policy papers to know the details well before settling for one. These finer details may even affect the assured sum and the insurance premium value. Henceforth, proper and punctual acknowledgement of all the insurance terms and conditions is essential.
Depending on the inclusions of the insurance plan, the concerned policyholder is entitled to receive the total sum assured in the case of permanent disability. However, in the case of temporary loss of work and earnings, a certain percentage of the total sum assured is paid out by the insurer to fulfil the current financial requirements for the term till which you are unable to work.
In case, if you become permanently and entirely incapacitated, you become eligible to receive the total sum assured under TPD coverage. However, if it is a partial and temporary disability, the concerned insurer will decide upon the percentage of payment.
To avail of the benefits, you need to observe these basic conditions:
You have to ensure regular and punctual premium payments to keep the coverage benefits active
If your disability diminishes your overall monthly income, then this coverage will provide you with the necessary benefits
Generally, this insurance covers 60%-80% of the earnings of the pre-disability era
The terms of the benefits may be set for a certain number of months, or years or may last until you reach a certain age, depending on the circumstances
The nature of the total permanent disability coverage depends on the nature of the disability. Some of the prominent examples of such disabilities include:
Total sight loss in both eyes causing total blindness
Total loss of hearing and loss of speech
Complete speech loss and loss of sight in one eye or loss of a limb
Complete sight loss in one eye and loss of one limb
Losing one hand and one foot beyond recovery
Permanent loss due to separation of both hands or both feet
Total hearing loss in both ears and loss of one limb or loss of sight in one eye
In the terms of health insurance cover, both permanent and temporary disabilities get separately classified. However, there are certain technical differences that the insurance companies follow to segregate between temporary and permanent disabilities:
| TEMPORARY DISABILITIES | PERMANENT DISABILITIES |
|---|---|
| A short-term disability spanning for a fixed duration of days, weeks, months or 1-2 years | A long-term physical disability that results in life-long physical impairment |
| Eligible to return to normal work schedule once the recovery period is over | Prolonged ailment makes you unable to get back to your normal work schedule |
| All the benefits get paid during recovery or generally last for 2 years | The insurance benefits are only available on the declaration of the prescribed medical practitioner that the recovery procedure is plateaued |
| Some examples of temporary disabilities include minor accidental injuries, bronchitis, cancer, etc. | Some examples of permanent disabilities include loss of speech, eyesight, hearing, limbs, etc. |
While buying total permanent disability cover, you must note that you can buy either individual permanent disability coverage or a special disability rider along with a basic personal accident cover. As a rider, you are liable to receive compensation from the insurance company for death or disability due to any accident. However, to enjoy bigger scope and coverage, it is better to opt for an individual, stand-alone plan.
We can never underestimate the importance of TPD insurance. However, before buying it, you must carefully analyse the financial requirements of your family, and consider the targets, liabilities, lifestyle necessities, demands, and needs of the dependent(s). Thorough research and careful homework is the key to getting the best deal.
