Why do you need Total Permanent Disability (TPD) Insurance Cover?

Life is unpredictable, as you may not know when you will face an unfortunate event such as an accident or medical emergency. Such uncertainty would have a high impact on your life both financially and emotionally.

That is why you need a Total Permanent Disability (TPD) cover to face such consequences. Different insurers use different terminologies, such as Total Permanent Disability (TPD) or Permanent Total Disability (PTD). Well, most of you may have yet to learn the benefits of this cover. Let us discuss this in detail.

What is Total Permanent Disability (TPD)?

TPD refers to a state in which a person is disabled permanently due to accidents. Whereas, tpd full form is total permanent disability.

This includes loss of limbs, vision or speech. Here, the percentage of the Sum Insured is based on the percentage of irreversible, permanent disability. However, permanent disability meaning is a mental or physical condition in which a person loses their ability to perform the duty or normal day-to-day work.

Benefits of Total Permanent Disability cover

A sudden disability can shatter your financial stability. In such cases, you definitely need Health Insurance for TPD. Here are the various benefits of a TPD insurance that would help you understand why it is essential.

Financial security

While having a permanent or long-term disability, it may be a complete struggle to lead a normal life. A Total Permanent Disability insurance or a long term disability insurance policy will assist you with your day-to-day expenses and support you in such cases.

Coverage for medical expenses

If you face a severe disability that leaves you bedridden, you must be prepared to take care of your medical expenses. Nowadays, in-patient hospitalisation and Medical treatments are quite expensive in India due to rising medical inflation. Having Total permanent disability insurance will help you to pay your medical bills and alternative treatment expenses.

Support the family

When you face a disability, you may be unable to continue working. In some cases, if you are the family’s breadwinner, it would be tough to tackle day-to-day financial needs and pay for your child’s education fees. The Total Permanent Disability insurance offers coverage for children’s education and supports the family to get back up.

How does a Total Permanent Disability Insurance cover work?

Getting Total Permanent Disability coverage is important as it supports your family even at difficult times. The terms and conditions of a TPD may vary for different insurance companies. Hence, it is crucial to read the respective policy clause before finalising your policy.

In case of permanent disability, the insured will be entitled to the entire Sum Insured as per the policy terms and conditions. On the other hand, if an insured is temporarily unable to work, then some percentage of the Sum Insured will be paid to meet the short-term income loss.

TPD coverage of an insured is dependent on the nature and extent of the disability.

How to Choose the Best TPD Insurance

1.  Assess your needs
   You need to understand your financial condition and any dependency that may exist. Consider your current income and expenditures, as well as any future expenses related to medical treatment or rehabilitation.
2. Compare policies
   Not all TPD insurance policies are the same. Research the insurers, coverage choices, and claim procedure. Be clear about the definitions of disability and the exclusions in each policy.
3. Word of Wisdom
   Insurance policies can be very confusing. Find a personal finance advisor or an insurance expert to guide you through the process and help you decide what's best for your needs.

Debunking the Most Common Misconceptions About TPD Insurance

1.  "I don't need it because I am young and healthy."
   Many young people think they don't need TPD insurance because they are healthy. The unexpected happens, and it's important to have coverage in place early.
2. "My Employer's Insurance is Enough"
    While disability insurance your employer provides is helpful, it might not be sufficient. Most employer      policies have limitations and may not provide enough coverage for your lifestyle and expenses.
3. "TPD Insurance is Too Expensive"
   Even though premiums vary based on the level of coverage and individual circumstances, TPD insurance is often less expensive than people expect. Long-term benefits usually have a benefits-to-cost ratio well over the costs eventually incurred when considering the financial impacts of a disability.

Exclusions in Total Permanent Disability cover

As per policy terms and conditions, the following contingencies won’t be considered for a Total Permanent Disability insurance cover:

• Suicide or self-injury
• Any pre-existing disease
• Injuries caused by war, invasion, revolution and so on
• Service under armed forces or NGOs
• Criminal assault or action
• Injuries caused by liquor drinking, drug, poison, etc.
• Martial arts and adventure sports like hiking, skydiving, trekking, etc.
• Accidents caused by mental disorders and instability
• Any loss or damage caused by the act of terrorism
• Disability caused during childbirth
   

This is only an indicative list. For a complete list, you can refer to the policy clause.

Accident care individual insurance from Star Health is a standalone personal accident plan offering coverage in case of death or disability due to an accident.

A unique feature of the policy is that the compensation for Permanent Total Disablement is 150% of the Sum Insured.

Eligibility – Any person between 18 and 70 years is eligible to take this insurance. A family plan is available for Insured, spouse and dependent children (after five months).

Coverage – This policy offers benefits depending on the Table of covers chosen:

Table A – Covers Accidental Death

Table B – Covers Accidental Death and Permanent Disablement

Table C – Covers Accidental Death, Permanent Total Disablement and Temporary Total Disablement, providing weekly compensation.

Additional Benefits – There are certain additional benefits that the policy offers (up to the limits specified in the policy document), such as an educational grant, ambulance charges, transportation expenses of mortal remains, travel expenses for one relative, transportation of imported medicines, vehicle and/or residence modification and purchase of blood. Optional benefits include medical expenses extension due to accident, hospital cash and home recovery.

For more details of the policy, you can refer to the policy clause.

In addition, Star Health offers specific Individual and Family-based policies covering accidents along with coverage for Permanent Total Disablement.

Conclusion

It is your choice to select a single Permanent Disability insurance cover or opt for an add-on with your existing accident insurance policy. However, if you want broader coverage for a permanent disability, opting for a sole Total Permanent Disability coverage is better.

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