Disability insurances are one of the most important aspects of the foundation to any financial plan, and sadly far too many Australian resident and expat families are not paying enough attention to the risks here.

This week our team at Ally Wealth Management are unpacking what Total & Permanent Disability (TPD) insurance is, what it covers, and why you need to be paying attention to the risks here.

What Is Total & Permanent Disability (TPD) Insurance?

Total and Permanent Disability (TPD) Insurance covers you in the event that you are no longer able to work and generate an income. This type of insurance will provide you with a lump sum payment in the event that you are totally and permanently disabled. As a working professional in Australia, losing your income could have a significant impact on you and your family. Some important questions to ask yourself when it comes to your TPD insurance are:

  • What would happen if you could no longer work and earn an income?
  • How would you continue to meet your ongoing family expenses?
  • How long could you survive and cover your regular expenses?

What Are The Six Activities of Daily Living?

Many TPD insurance policies will provide a payout of your insured amount based on confirmation of your inability to perform a number of the six daily activities. These activities are as follows:

Why Do I Need Total & Permanent Disability Insurance?

The right TPD policy can provide some peace of mind for you and your family in the event that you’re unable to work and unable to carry out daily activities. Given the high likelihood that at some point in your working life you will be unable to work due to disability, with approximately 45% of all Australians suffering a mental health disorder in their lifetime (Australian Bureau of Statics, 2009), and almost 500,000 Australians being hospitalised each year due to injury (Australian Institute of Health and Welfare, 2018), it’s important to ensure you’re protected.

What Do I Need To Consider With My TPD Insurance Policy?

As is often the case when it comes to insurance policies, there are many considerations for your TPD policy, some of which include:

  • Exclusions of your policy
  • Waiting periods before you can claim
  • Stepped vs. Level Premiums
  • Linked to existing cover or not
  • Limitations of your cover

Who Do I Speak To About My Insurance?

As always, it’s important to seek the guidance and advice of an experienced Australian financial planner who can explore your options and ensure that you have the right total & permanent disability insurance based on your personal circumstances.



Ally Wealth Management is the trusted ally in finance for Australians at home and across the globe. As both Australian expats and residents, the founders of Ally have a unique understanding of the common personal financial challenges faced.

Book your complimentary appointment with our team at Ally Wealth Management to discuss how we can help you to achieve your financial goals.

Ally Wealth Management Pty Ltd is a Corporate Authorised Representative of Sentry Advice Pty Ltd ABN 77 103 642 888. Sentry Advice holds an Australian Financial Services Licence (AFSL) No. 227 748.

General Advice Warning: The information contained herein is of a general nature only and does not constitute personal advice. You should not act on any recommendation without considering your personal needs, circumstances and objectives. We recommend you obtain professional financial advice specific to your circumstances.