The better we protect the people who are important to us, the better our lives are.
Total and Permanent Disability insurance (often called TPD for short) is designed to protect against long-term disability and pay a lump sum (or in some cases by installments) if you become permanently disabled, as defined in the policy.
- Generally, a permanent disability means you can’t work in your current occupation or in a job you’ve already trained or studied for, or previously worked in.
- Importantly the minimum waiting period is 6 months before any payment is available.
- It’s important to carefully read the fine print in these specialty policies because different definitions usually apply to TPD insurance.
Your financial advisor from Unusual Risks Insured is the expert to best help you understand your options and how to ‘sift through the rocks to find the diamonds’.
Practically speaking - "don’t let disability ruin the rest of your life"
Case Study
Meet Tina and Garry: both parents and positive. Their overseas holiday of a lifetime to the snow turned into a nightmare when a skiing accident left Garry with a serious spinal fracture, two broken wrists, and now facing the possibility of life in a wheelchair.
- Apart from dealing with the shock to the family, the couple had to contend with the cost of multiple surgeries, rehabilitation and completely modifying their home and car for Garry.
Because they had sufficient levels of high-quality TPD insurance cover in place, they were able to pay out the remaining home mortgage, pay for modifications to the house and car, pay for world-class rehabilitation, and even advanced medical gene therapy. There were even enough funds for Tina to reduce her work hours to part-time for a year, and still meet the family living expenses while helping Garry adjust to a new life.
Why you may need TPD cover
Our greatest asset is our ability to continue to earn our income.
Most Australians just don't have enough savings or backup resources available to protect their lifestyle if they suffer a permanent disability.
- If you were unable to work, how would you afford to pay your living expenses?
- How would you afford the new and ongoing medical costs associated with serious illness and injuries?
TPD insurance can provide the funds to pay off debts, pay for medical treatments, and maintain your lifestyle while you focus on adjusting to what may be a very different lifestyle after a significant accident or illness.
It’s especially relevant for:
- people with partners (and dependents) - particularly if you’re a one-income-family
- people who are financially responsible for a special needs sibling, aging parents, or managing a long term medical condition
- people with mortgage debt or paying large rent, who have debts that couldn't be paid out from savings alone
Real Life Statistics
- In Australia, a person suffers a stroke every nine minutes and there are an estimated 475,000 stroke survivors living in our communities. National Stroke Foundation
- Almost half a million Australians are hospitalised each year as a result of injury, and a further 12,000 people die due to injury. Australian Institute of Health and Welfare – Injury, June 2017
This is how Total and Permanent Disability insurance works alongside Income Protection and Crisis Recovery insurance. Together they can protect you against long-term permanent disability and short-term interruption in your ability to go on earning your income. When you meet the conditions of both insurances you can receive both benefit payments
How it works together with other insurance covers
Total and Permanent Disability protection (TPD for short) can provide protection against total and permanent disability by providing you a lump sum of money to make lifestyle modifications in case you become disabled and can never work again. TPD is the ultimate long term peace of mind for you, your partner and your family's continuing financial independence. You can use this money to cover your medical and rehabilitation costs, as well as any future expenses, which may also include modifying your home or car. Most probably, Yes. TPD insurance is usually bundled with Life Insurance and usually covers a range of significant disabilities that can include hearing loss, loss of sight, mental health disorders, speech impairment, as specified in the policy. TPD policies either offer cover if you can no longer work in your usual job (own occupation) or may only cover you if you can't work in any job at all (any occupation). Premiums, terms and conditions will vary according to the definitions used in the insurance contract, so you'll need professional guidance before making any decision. The cost of Total & Permanent Disability insurance is based on a range of factors: your age, gender, smoking (and vaping) status, current health, lifestyle, and general occupation. Total & Permanent Disability insurance premiums can be paid monthly or half-yearly and yearly by direct debit and may be tax-deductible. The premiums for the standard level of this type of policy may be able to be paid from a super fund or an SMSF. Premiums for the advanced level of cover may be able to be paid from a mix of personal funds and super funds, often referred to as a Super-Linked policy. This depends upon your age, financial capacities and level of support or independence and the future costs of making significant life changes due to disability. Many people 'mirror' the amount of life insurance cover with TPD cover. For example, if a person has $1,000,000 (sufficient to pay out a mortgage and retire etc.) of life insurance they may choose to have the identical level of TPD cover too. TPD insurance can become more effective when it's supplementing your Income Protection cover that can pay an income until age 65 (or whatever is the specified length of that policy). Together they can help provide a backup plan if long term or permanent disability strikes. Every insurance company defines Total & Permanent Disability (TPD) slightly differently and that's why you need a specialist Risk Adviser from Unusual Risks to help you get the best version available for you. There are 4 main definitions available, the most common are referred to as Own and Any, and refers to the types of occupations you could wish to protect. The Best is Own Occupation TPD - the Basic is Modified TPD No. A Guaranteed Renewable policy obligates the insurer to continue coverage as long as premiums are paid on the policy, regardless of changes in the policy owner's health or occupation. Yes. But be aware that over time many people become more expensive to insure (and even uninsurable). Get your insurance sorted while too can No. There is no requirement for you to update a life insurance company about any changes in your future health. Once a Total and Permanent Disability policy is in force, any future changes in your health (or even your occupation), will not affect your cover while the policy remains paid up and in force.
Questions people ask about ...
Total & Permanent Disability insurance (TPD)
What is it?
Do I need Total & Permanent Disability insurance?
How much does Total & Permanent Disability insurance cost?
How do you pay for Total & Permanent Disability insurance?
How much Total & Permanent Disability Insurance cover do I need?
Are there different types of Total & Permanent Disability Insurance cover and which is best?
– This might include Doctors, Dentists and Self-employed Engineers.
– This grade of insurance cover is not able to be paid for by a super fund.
– are unable to obtain more comprehensive cover due to health, high risk occupations, or pastimes
– elect to take a limited level of cover as a way to put some low-cost cover in place – wish to top-up existing cover.
Can they cancel the policy on me if I get sick?
Can I upgrade the policy as I need later?
Do I have to update an insurance company about changes in my future health?
Where to Now?
Continue your journey…
- Make sure you Browse through our Blog
- Have questions? See our Frequently Asked Questions
- Discover someone with a similar situation in our list of Case Studies
- When you're ready to know if we can work with you, take our Anonymous Pre-assessment
- Send us an Email or Jump the queue and Call for a Chat
🏛️ Service Contract Summary
Protecting yourself from sickness and injury – so you can keep on earning a living.
We help people living with well-managed HIV, diabetes or other complex health conditions get high quality Income Protection cover
Previously, people with complex health needs were excluded from high-quality Income Protection - now that's changed for our clients.
- Income Protection is an insurance cover for one of the most important assets of all – your ability to continue to keep on earning a living.
Explaining Income Protection
Income Protection insurance as the name suggests is designed to protect your ability to continue to earn an income and pay up to 70% (previously 75%) of your income if you're unable to work due to sickness or injury. It can provide cover worldwide 24/7 and can even protect 100% of your employer's super contributions too.
- The waiting period is the number of days before the income benefit payments start. It can be as short as 14 days and can be as long as 12 months (or even more), whatever you choose.
- The benefit period is the length of time you’ll receive payments while you’re unable to work due to sickness or injury. These can often be for set periods of 2 years or more, even up to age 65 (and now in some cases age 70), depending on what you choose.
- The payment method is the way you agree to pay the insurance premiums. These can be from your personal funds, perhaps from your super fund or even a combination of both, depending upon whatever you choose.
There are so many different options available with Income Protection.
Your financial advisor from unusual risks is the expert to best help you understand your options and cut through what can often feel an overwhelming process to find your unique solution.
Our income drives our lifestyle - not just paying rent, mortgages, car loans and credit cards, but living a full and interesting life Drew Browne
Practically speaking - always protect what you cannot afford to lose
Case Study
Meet Amber and Jenni: corporate professionals who, like most Australians, rely upon their weekly wages to maintain their lifestyle.
Leanne had a back injury that over time deteriorated into a herniated disk in her lower back and she needed to claim upon her income protection insurance.
This is how Leanne's income protection was useful in three different ways;
- While needing to work part time with reduced hours due to the injury, her income protection insurance helped cover the part time loss of wages.
- A year later when the doctors decided a surgical solution was needed and Leanne was unable to work at all, her income protection helped cover the full-time loss of wages while surgery, recovery, and rehabilitation occurred.
- After successful surgery and rehabilitation, Leanne returned to work, initially part-time. Her income protection insurance again helped cover the part time loss of wages until she was able to fully return to work and continue her normal job. At that point, her income protection stopped and life returned to a new type of normal.
Having access to flexible income protection, Leanne was able to take time off work as she needed and have her income continue to meet her mortgage, car loans, manage credit cards and plan a way through with financial certainty.
In an unrelated incident the following year while cleaning a blocked gutter in the rain, while standing on a wheelie bin, Leanne slipped and broke her leg and was off work again - and her income protection commenced again as it was needed.
Why you may need income protection
The financial engine of our lifestyles is our continuing ability to earn our incomes.
Over the course of a lifetime, most people will earn a small fortune (and rely upon their super contributions for their ability to eventually retire).
Protecting your ability to continue to earn an income makes clear financial sense.
It’s especially relevant for:
- Single people who might not have strong family or relationship support
- People in relationships depending upon dual incomes
- People with ongoing debts, like a mortgage, rent, credit cards and personal loans that couldn't be paid if they were unable to work due to sickness or injury.
- People who have regular family expenses like food, household bills, council rates or strata fees, school fees, vehicle costs (and perhaps child support payments or IVF treatment costs) and who don't have immediate access to substantial savings to use to replace their lost income if needed
- People who want an effective backup plan in place if one (or both of their incomes) were to stop due to sickness or injury
A special note for self-employed people
Self-employed and business people have different needs and restrictions on their incomes so if that's your situation, relax, the professionals behind Unusual Risks Insured can talk you through your special options too.
Real Life Statistics
- 20% of all mortgage defaults in Australia are ‘due to illness or accident in household'
(Mortgage default in Australia: nature, causes and social and economic Impacts, Australian Housing and Urban Research Institute, March 2010)
How it works together with other insurance covers
This is how Income Protection works alongsideTotal and Permanent Disability.
- Income Protection insurance is designed to protect up to 70% of your income after a waiting period of your choice, while you cannot work due to sickness or injury.
- TPD insurance is designed to protect against long-term disability and pay a lump sum after 6-month wait if you become permanently disabled, as defined in the policy and you can no longer work in your current occupation.
- Crisis Recovery insurance is designed to pay an immediate lump sum to help offset short-term unexpected medical expenses should you suffer a medical crisis specified in the policy, to help stabilise debt obligations and personal cash flow.
Together they can protect you against short term interruption in your ability to go on earning your income and long term permanent disability when you meet the conditions of both insurances you can receive both benefit payments
Questions people ask about ...
Income Protection Insurances
Take a look at some quick questions people ask about Income Protection Insurance.
What is it?
Income Protection Insurance provides a regular payment in place of your income if you’re unable to work for extended periods due to injury or illness.
- Income Protection can protect up to 70% of your earned income if you're sick or injured and can't continue to work in your current job.
How it helps you?
Income Protection can help get you through a difficult period, without having to eat into your savings or rely on outside help – so a temporary setback to earning your income doesn’t put you behind for years.
What's the chance of needing it?
- There is a 1 in 4 chance of needing to claim for Income Protection insurance during your working life.
It can pay you for as long as you remain temporarily disabled and unable to work, as specified in your policy and depending on the policy, can also replace your super fund contribution, so your retirement savings can keep growing even while you’re unable to work.
Do I need Income Protection insurance?
Most probably, Yes.
You have a 1 in 4 chance of being off work for at least 3 months due to sickness or injury before you reach age 65 and most people do not have sufficient liquid assets in an emergency fund to replace their income (and continue to pay their regular bills) for more than 30 days.
When you start thinking about Income Protection insurance, you're also protecting your ability to continue to receive an income until you either recover or retire.
How much does it cost?
The cost of Income Protection insurance is based on a range of factors: your age, gender, smoking (and vaping) status, current health, lifestyle, and general occupation.
How do you pay for it?
Income Protection insurance premiums can be paid monthly, half-yearly or yearly by direct debit and may be tax-deductible.
You may even be able to have the premiums paid from an existing super fund or SMSF as an automatic partial rollover, in certain circumstances.
How much Income Protection cover do I need?
You can choose up to 75% of your earned income How much cover you need depends upon your ability to meet your own ongoing living (and perhaps Rehabilitation) costs, the degree to which you depend upon your income and who depends on you financially.
Can they cancel the policy on me if I get sick?
No. A Guaranteed Renewable Income Protection policy obligates the insurer to continue coverage as long as premiums are paid on the policy, regardless of changes in the policy owner's health or occupation.
Can I upgrade the policy as I need later?
You can always apply to upgrade an existing policy to a higher level of cover when you're verifiable income increases beyond 75% of your current in force policy.
Do I have to update them about changes in my health?
No. There is no requirement for you to update a life insurance company about any changes in your future health.
Once an Income Protection Insurance policy is in force, any future changes in your health (or even your occupation), will not affect your cover while the policy remains paid up and in force.
Where to Now?
Continue your journey…
- Make sure you Browse through our Blog
- Have questions? See our Frequently Asked Questions
- Discover someone with a similar situation in our list of Case Studies
- When you're ready to know if we can work with you, take our Anonymous Pre-assessment
- Send us an Email or Jump the queue and Call for a Chat
🏛️ Service Contract Summary
If you're thinking about life insurances, chances are you have something worth protecting.
These days HIV or diabetes doesn't have to be a life sentence
But most insurance companies still treat you like it is.
People with pre-existing well‑managed complex health conditions have, up till now, been prevented from accessing quality Life Insurances and Income Protection cover, simply because of their conditions.
Explaining Life insurance cover
Life insurance (also called term life or death cover) is designed to protect against the financial impact of unexpected death and pay a specified amount of money to your beneficiaries, helping to make sure they’re looked after in the event should that occur.
- The benefit payout is either paid to the owner of the policy, your nominated beneficiaries, or your estate.
- High-quality life cover can also payout upon diagnosis of a terminal illness in the final 24 months.
Practically speaking - don't leave your debt to people you love
Case Study
Meet John and David: partnered and paying a large mortgage together.
David’s $1.5 million life insurance policy will ensure his partner John is cared for in the event of an unexpected death or terminal illness, and the amount of cover is sufficient to pay off the mortgage and provide funds to invest to help replace David's income too.
- After driving home from a work event, David is injured in a multi-vehicle car accident, suffering a heart attack and passed away.
- His life insurance payout meant his partner John could remain in the family home they’d renovated together, could pay off the remaining mortgage, could continue to live close to their established network of friends and family of choice in the community they had both contributed to and live the lifestyle they had designed together.
It allowed John to face an unexpected major life change with the backup of significant financial options.
Why you may need life cover
Most people don't know that 30% of all life insurance payouts have been for terminal illness
Expenses to protect could include:
- How much would be needed to pay off all your debt upon your unexpected death?
- How much would your surviving partner (and any dependents) need to pay living expenses?
- How much do children need to complete education and how will this be funded?
- If you unexpectedly passed away, would you want your partner to need to downsize and move to a cheaper location?
- Would you want them to have the stability of being able to remain in a familiar environment and help any children complete their education with the advantage of having a parent at home to look after them?
- And what are the practical cost for end-of-life expenses and how will this be funded?
Real Life Statistics
- 30% of all life cover claims are for terminal illnesses.
- 43,477 deaths were attributed to cardiovascular disease in Australia in 2017 and kills one Australian every 12 minutes. Australian Institute of Health and Welfare – Injury, June 2017
This is not just about getting a Life Insurance policy, this is a human rights issue.
We believe that every Australian should have equal access to high-quality Life Insurance products, no matter what their sexuality, gender, race, age or beliefs. We believe this is not just about getting Life Insurance, this is a human rights issue.
Life Insurance can help you be certain your loved ones are provided for; your child's educational needs are taken care of and your chosen family won't have to worry about their future if you’re not there to continue to protect and provide for them.
When does life insurance payout?
Life insurance will normally payout upon the death of the life insured and can help their dependants cope financially after you die.
Many people don't know that high-quality life insurance can also pay out upon the diagnosis of a terminal illness in the remaining 24 months, as well making it a strong part of a backup plan.
A sad but all too-common experience
Often, when a couple establishes a life insurance policy to protect each other, one person has their application accepted, but the other is refused because of a pre-existing health condition.
Both are left feeling that a wedge has been driven between them and that their needs and choices were not understood, honoured or valued.
At Unusual Risks Insured our mission is to change this and be the change we want to see in the world.
How it works together with other insurance covers
This is how Life Insurance works alongside Disability Insurances
- Life Insurance can also payout upon a Terminal Illness in the last 24 months.
- Approximately 30% of all life insurance payouts are for terminal illnesses.
- This is referred to as a payment in advance and can be a significant financial help during the most difficult of times.
- Crisis Recovery insurance is designed to pay an immediate lump sum to help offset unexpected medical expenses and help you maintain your financial liquidity in the event of an unforeseen (and usually expensive) medical crisis specified in the policy. This can help stabilise debt obligations and boost your personal cash flow at a time when you are focused on recovery.
- Income Protection insurance is designed to protect up to 70% of your income after a waiting period of your choice, while you cannot work due to sickness or injury.
- Total & Permanent Disability insurance is designed to protect against long-term disability and pay a lump sum after a 6-month wait if you become permanently disabled, as defined in the policy and you can no longer work in your current occupation.
Life insurance can provide a safety net for you today against terminal illness and provide for your family tomorrow.
Questions people ask about ...
General Questions people ask about Life Insurance
Take a look at some quick questions people ask about Life Insurance.
What is it?The basic premise is simple:
- Life insurance gives you peace of mind while you're alive, and financial support for your loved ones when you're gone.
Life insurance can make a huge difference for you, your partner and your family, not just financially but emotionally too.
What's the chance of needing it?- There is a 1 in 10 chance of needing to claim for Life insurance or Terminal Illness.
Setting up a life insurance policy sooner, rather than later, will give you immediate security, more options and flexibility you'll need in the future.
Do I need Life Insurance?
Most probably, Yes.
It's something you should have if there are people in your life depending on you for everyday living expenses, renting a home or paying a mortgage and other major debts, protecting a family and even funding education costs or helping aging parents heading for retirement.
If you expect to have someone in the future who will be depending upon you, you might like to get things sorted now while you have confidence you can qualify for a life insurance policy.
How much does it cost?
The cost of Life Insurance is based on a range of factors: your age, gender, smoking (and vaping) status, current health, lifestyle, and general occupation.
Many people take a 'best to budget approach' and set a budget for insurance premiums.
How does it work?
If you were to unexpectedly pass away or become terminally ill, the policy is designed to payout to the nominated beneficiary or the estate of the life insured.
You can change your life insurance beneficiary nomination as often as you need.
How do you pay for it?
Life insurance premiums can be paid monthly or half-yearly and yearly by direct debit.
You may even be able to have the premiums paid from an existing super fund or SMSF as an automatic partial rollover, in certain circumstances.
How much life insurance cover do I need?
It depends on where you are in your life, what your big plans are and who depends on you financially.
If your single and self-reliant, you're probably interested in Income Protection for you now and Life Insurance for your future partner.
When you're in a relationship or have a family, you probably want to have enough to replace your income so your partner or spouse and children have the support they need.
- Use the Governments Money Smart Insurance Needs Calculator to find out how much life insurance you may need or we can help you talk through your options and prioritise your needs.
- You might also enjoy watching our fun explainer video called How Much is Enough? to help start your thinking about this difficult question.
Can they cancel the policy on me if I get sick?
No. A Guaranteed Renewable policy is an insurance policy feature that obligates the insurer to continue coverage as long as premiums are paid on the policy, regardless of changes in the policy owners health or occupation.
Can I upgrade the policy as I need later?
Yes. You can always apply to upgrade an existing policy to a higher level of cover.
You will probably need to make a fresh application and health assessment when seeking to increase your level of cover, so consider taking out a higher level of cover now with certainty, rather than running the risk later of not being able to increase your policy due to any unforeseen significant change in your occupation or your health.
Do I have to update them about changes in my health?
No. There is no requirement for you to update a life insurance company about any changes in your future health.
Once a Life Insurance policy is in force, any future changes in your health (or even your occupation), will not affect your cover while the policy remains paid up and in force.
Where to Now?
Continue your journey…
- Make sure you Browse through our Blog
- Have questions? See our Frequently Asked Questions
- Discover someone with a similar situation in our list of Case Studies
- When you're ready to know if we can work with you, take our Anonymous Pre-assessment
- Send us an Email or Jump the queue and Call for a Chat
🏛️ Service Contract Summary
We understand that today's modern families can be biological or logical
They can also include:
same-sex couples
same-sex parents
step-families
one-parent families
extended families
blended families
co-parented families
gender neutral families
families with carers
people living apart together (TLAT), and even
traditional parents with kids
For someone living with pre-existing medical conditions like HIV or diabetes, a family can even extend to a network of close friends.
However you identify and whoever is family to you, we believe no one should miss out.
No one should miss out
While our anonymous online pre-assessment is designed for people with well-managed HIV or diabetes, we understand that you might be here at our website because of different reasons too.
If you're HIV negative or non-diabetic
- you're HIV negative and have a partner, friend or relative who is HIV positive
- you're non-diabetic and have a partner, friend or relative who is a diabetic
- or if you're living with another complex health condition or caring for someone who is
whoever you are, we'd love to work with you too.
How can we help you?
We find that generally, people want to be responsible.
- When given the opportunity and the tools they rise to any challenge and actively look for ways to help protect and provide for their loved ones.
Advice and help for everyone
We can provide helpful advice and strategies about ways to protect and provide for your Modern Family - whoever that is to you - covering:
Life & Terminal Illness protection
Income Protection protection
Medical Crisis Recovery protection
Total & Permanent Disability (TPD) protection
And a full set of personal insurance solutions for Self Employed people and those with high privacy needs.
Advice and help for those practical issues like
Transferring & Managing Existing Life Insurance Policies to consolidate and manage for you
Updating & Managing Beneficiary Nominations for life insurance and super
Establishing Life Insurances for Intended Parents and Surrogates
Establishing Key Person Protection for Non-for-Profit registered entitles
Advice and help for business people
Business Owners and their families often have additional needs not usually catered for in their personal insurance strategies.
We can help you fix that with helpful advice about:
Specialty Business Key Person and Debt protection
Specialty Business Fixed Expenses protection
Specialty Business Owners and Professional Partnerships protection
Specialty Business Owner and Partnership continuation and succession protection
The information you find on this website will give you a good understanding of insurance and related products and services available for people with pre-existing medical conditions.
Where to Now?
Continue your journey…
- Make sure you Browse through our Blog
- Have questions? See our Frequently Asked Questions
- Discover someone with a similar situation in our list of Case Studies
- When you're ready to know if we can work with you, take our Anonymous Pre-assessment
- Send us an Email or Jump the queue and Call for a Chat
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