How much TPD Insurance do I need?

Working out how much Life Insurance you need in the event of a catastrophic injury or illness can be a tricky business. By making sure you have enough cover to meet your existing needs, as well as the cost of treatment and rehabilitation, you can help make the road to recovery a smoother one for you and your family.

NobleOak Total and Permanent Disability (TPD) Insurance is offered as an optional extra with NobleOak Life Cover. You can apply for an amount up to your Life Cover sum insured, to a maximum of $5 million. This is paid as a lump sum in the event that you became totally and permanently disabled due to a serious injury or illness. The amount of cover you would need depends on your individual situation, and is affected by things like your income, your dependants, your debts and assets.

How your income could be impacted

How much do you currently earn and how much do you and your family rely on your income? Even if you don’t earn an income, your total and permanent disability could have a big impact on your family.

TPD Insurance can help provide for your future cost of living, which could be significantly different from the one you currently enjoy. If you become seriously disabled, your partner may be forced to give up work to help care for you, which could take you from being a two-income family to having no income stream at all.

If your partner continues to work, you may need to pay for a carer to help you to perform simple daily activities like getting dressed and out of bed, toileting and preparing meals.

How would you pay any debts

If you have a mortgage, you may want to make sure that you can pay it off and clear any other outstanding debt such as credit card and car payments. Particularly, where you do not want to risk losing your family home or putting your family under financial stress if you were unable to manage your mortgage or loan repayments.

Caring for your dependants

How many children you have and how old they are can have a significant impact on the amount of TPD Insurance you may need. The younger your children are, the longer they will be financial dependant on you. Factor in any regular and future expenses, such as school fees and out of school activities, health insurance, annual holidays and incidental expenses, on top of the cost of day-to-day living.

Paying for rehabilitation costs

If you were permanently disabled and unable to work again, your TPD payment would ideally help cover the cost of long-term care or medical expenses, as well as possibly modifying your home. These expenses can easily run into the hundreds of thousands of dollars, which is a burden you will not want to be worrying about when you are trying to focus on making a full recovery.

The right insurance for you

Having the right amount of TPD Insurance for your needs is crucial. Too little could result in a nasty surprise if you need to claim, while too much could mean you are paying more than you need to. Contact NobleOak to speak to one of our Insurance Specialists to learn more about getting the right TPD Insurance for you.