It’s a big question isn’t it, maybe the biggest when you’re looking at taking out a TPD (Total and Permanent Disability) insurance policy.
Life insurance is still, I suppose, the big one that most people take policies on. If, heaven forbid, you have a medical condition or accident that ends your life your life insurance will be there to look after the loved ones and dependents you leave behind. The money never of course replaces the person. But if that person happened to still be a breadwinner, the financial hardship of living without them is alleviated.
But there’s a whole other side to insurance a just as important and, as strange as this might seem, can be possibly more stressful financially on the individual and their family than death. It’s what happens in the event of you contracting a medical condition or having an accident that leaves you totally and permanently disabled and unable to earn a living. In this situation adding to the stress that comes from the lost wage there’s also the pressure that comes with extra medical expenses for treatment or rehabilitation.
So statistically what are the events you should make sure you’re covered for?
As confronting as this might be let’s look at events that don’t take a person’s life but leave them totally and permanently disabled (TPD). This is a pretty important category to be insured for. AIA Australia, one of this country’s leading insurance providers, has released the following data around TPD claims.
The face of TPD insurance claims has changed dramatically in the last 5 to 10 years. Musculoskeletal (mainly back) used to dominate claims. According to AIA, in 2021 mental health TPD claims are now the number one claimable event for men with more than 51% of claims for TPD being mental health related. For women, accidents and injuries is the highest claim category at 26%.
Musculoskeletal conditions affect the bones, muscles and their attachments, including joint problems. There are more than 100 musculoskeletal conditions, with the most common being osteoarthritis, rheumatoid arthritis, osteoporosis and back pain. Musculoskeletal is still a high claim category, especially for women, with 18% of women claiming for musculoskeletal issues causing total and permanent disability.
General accidents and injuries account for about 25% to 30% of claims for men and women.
So in looking at what your TPD policy covers you for it makes sense to make sure you’re covered for the situations that arise most often. This needs to be tempered of course by your personal health and work situation.
If you are interested in a free TPD quote contact Spotter Life and we will compare policies from companies on our panel.