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TPD
NZ-Pathfinder Financial Services
Services Personal Risk Insurance TPD

Total and Permanent Disability (TPD) Insurance

What would happen to your family’s finances if you couldn't earn an income anymore?

What is Total and Permanent Disability Insurance?

TPD insurance provides a lump sum payment if you become totally and permanently unable to work due to illness or injury. This financial support helps protect your family's lifestyle and manage ongoing expenses.


Policies typically offer two main definitions of disability:

  • Own Occupation: You are unable to ever return to your own occupation.
  • Any Occupation: You are unable to ever return to any occupation suited to your education, training, or experience.

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FAQs

How does trauma insurance work?

Once you receive a qualifying diagnosis, the policy pays out a predetermined lump sum. This amount can be used at your discretion, whether to cover hospital bills, treatment costs, or to supplement lost income during your recovery period.

What conditions are typically covered?

Common conditions include heart attacks, strokes, and various types of cancer. Some policies may also cover additional illnesses or offer partial benefits for early diagnoses, so it’s important to review the specific terms of each policy.

Who should consider trauma insurance?

Trauma insurance is beneficial for anyone looking to safeguard their financial future against the impact of a critical illness. Whether you're a wage earner or self-employed, it provides an extra layer of financial security during challenging times.

How are premiums determined?

Premiums depend on several factors such as your age, health status, lifestyle habits (e.g., smoking), and the level of coverage you choose. Each policy may also offer different premium structures—such as level or stepped premiums—based on your circumstances.

Can trauma insurance be integrated with other policies?

Yes, many individuals use trauma insurance alongside life or income protection policies. This integration can provide comprehensive coverage, ensuring that both immediate and long-term financial needs are addressed.

Are there any waiting periods or exclusions?

Most policies include waiting periods, often around 90 days for certain conditions, to prevent claims on pre-existing conditions. Additionally, exclusions may apply for specific situations or undisclosed health issues, so it’s important to understand the fine print.

How do I choose the right trauma insurance policy?

Start by assessing your financial obligations and potential risks. Then, compare the coverage details, benefits, and costs of different policies to find the one that best fits your needs. Detailed comparisons and clear guidance can help you make an informed decision.