Your income is a cornerstone to your financial independence. It pays for your lifestyle now and into the future.

If you have income protection and life cover, you have covered off the major issues that befall most people - loss of income due to disablement, usually short term, and death.

Total permanent disability is a remote possibility but it does happen. Consider finding yourself in the situation of being totally disabled and never returning to work.

TPD is an insurance benefit that is paid as a lump sum, much like life cover and trauma insurance. TPD is paid on assessment of you not being able to ever return to your occupation, in the case of an own occupation benefit, or any occupation in the case of an any occupation benefit. This assessment period for total disablement has a minimum time frame of 3 months but can often take longer for your medical professional to make a diagnosis and advise the insurance company.

You would consider TPD for a number of reasons; to reduce debt, to enable you to top up your Income Protection long term, you may plan for it to provide for your full time care if you need it.

One thing which does need consideration, if you have trauma insurance, is how much additional TPD you require. Some newer trauma insurance products have TPD built in, meaning if the reason for your trauma cover is the same as your TPD you may not need as much TPD as you think.