Total and Permanent Disability (TPD) provides a lump sum in the event of the insured being totally and permanently disabled as defined in the specific policies.

THE QUALITY OF THESE DEFINITIONS CAN VARY GREATLY SO OBTAINING ADVISE FROM AN ADVISER IS CRUCIAL IN THIS MATTER.

Generally this risk is attached to a life policy (as a rider to the life insurance contract) although some companies now offer a free standing TPD contract (known as a Stand Alone policy).

Unfortunately TPD risk is often overlooked which can be catastrophic; Total and Permanent Disability is often referred to as the living death as the individual’s earning capacity is removed but the cost of living often actually increases.