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Note: We do not offer TPD insurance. This is an old article from 2012.

Trade Insurance

TPD insurance is one of the most important types of cover for any tradesman.

The policy pays a lump sum to you in the event that you become totally and permanently disabled.

To be deemed totally and permanently disabled for the purposes of an insurance claim, it generally comes down a doctor giving their medical opinion that you are unlikely to ever work again.

The proceeds from a TPD insurance claim are often used to repay debts, replace income and provide for any medical or rehabilitation expenses.

TPD insurance is available with two different definitions, which are own occupation and any occupation. You can read more about these in the side bar to the right.

Although TPD may not be up there with public liability insurance as the number one form of trade insurance, it is certainly an important form of protection that an increasing number of tradesmen are seeing the benefits in.

Why tradesmen need TPD insurance

As a tradesman, you’re out there every day working hard to build a better life for yourself and your family.

But what if something happened to you? What if you suffered a serious injury or illness that left you unable to work ever again?

Permanently losing your ability to work can be a devastating blow both financially and emotionally. Without the right insurance in place you will most likely end up on Centrelink benefits, and potentially you won’t be able to maintain your mortgage which could mean downgrading the family home.

TPD insurance takes this risk away by providing you with a lump sum amount of up to $5 million which can be used for a variety of worthwhile causes to ensure you and your family maintain maximum quality of life.

This type of insurance is extremely important for tradesmen within families, but even for the young single blokes out there it is still important. Without TPD insurance you could be spending the rest of your life on a Centrelink disability pension of around $300 per week.

Insurance is the best way to protect against losing everything you’ve worked for.

What can the proceeds by used for?

The proceeds from a TPD insurance claim can be used for any purpose you choose, however there are certainly some uses which are more common.

Depending on how much TPD insurance is held, the proceeds are often used to repay the mortgage and any other debts, cover any shortfall in your income protection if necessary, and cover any outstanding medical bills which are not covered by your health insurance.

Many serious injuries resulting in a TPD claim can leave you in a wheelchair or with heavily restricted mobility. Therefore it may be necessary to install ramps or a lift in your home, or purchase a different vehicle to suit your condition. These things can be hugely expensive, but with TPD insurance they can be taken care of.

Another consideration is rehabilitation costs. The public system or your private health care will provide basic rehabilitation services, but what if you wanted to travel overseas to obtain the best rehabilitation available? Again, TPD insurance can make this a reality, leading to an improved quality of life for you and your family.

How much does TPD insurance cost?

TPD insurance is generally a lot cheaper than income protection or life insurance. It is a different type of cover of course, but it is certainly one of the cheaper forms of personal risk cover available.

The cost of your TPD insurance will depend on many of the same factors as income protection, such as your age, gender, smoking status and the type of trade you work in.

Unlike income protection, the premiums for TPD insurance are not tax deductible, but the good news is that the proceeds from a TPD claim are completely tax free.

TPD definitions

When taking out a TPD policy you will need to choose from two different definitions available.

The two definitions are known asown occupation and any occupation.

Both definitions require that a doctor deems you to be unlikely to work ever again, however there is an important difference.

An own occupation policy requires that you are unable to perform your usual occupation ever again.

An any occupation policy requires that you are unable to perform any occupation ever again that you are reasonably suited to by training, qualification or experience.

People working in some trades may be restricted to a certain definition, so it is important to check this with the insurance company before applying for cover.

The TPD definition you choose is very important, and could be the difference between receiving your full claim or receiving nothing.

We recommend that you speak to one of our insurance experts before deciding on a definition and proceeding with cover.

TPD insurance quote

Getting a quote for your TPD insurance is easy with Trade Risk. As the tradesman insurance specialists we can help you out with quotes on TPD and a range of other covers.

Simply complete our online quote form with your personal info, and one of our insurance experts will provide you with your quotes via phone or email depending on your preference.

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