TPD Insurance in New Zealand
Total and Permanent Disability (TPD) insurance pays a tax-free lump sum if you become permanently disabled and are unable to work again. It is the cover that deals with the long-term, life-changing scenario that income protection alone may not fully address.
What is tpd insurance?
If you suffer an illness or injury that meets the policy’s definition of total and permanent disability, the insurer pays an agreed lump sum. That money can clear the mortgage, fund home or vehicle modifications, cover ongoing care, and replace income you can no longer earn. Definitions — “own occupation” versus “any occupation” — make a real difference to when you can claim.
What it can cover
Who it’s for
- Main income earners whose family depends on their ability to work
- People in physically demanding occupations
- Anyone wanting protection against the worst-case, permanent scenario
- Those who already hold life and income cover and want to close the gap
What to think about
The definition of disability is the single most important detail in a TPD policy, and it varies significantly between insurers. An adviser will explain own-occupation versus any-occupation cover, help you set the right sum insured, and show how TPD works together with life, trauma and income protection.
Frequently asked questions
What does “total and permanent disability” mean?
How is TPD different from income protection?
Can TPD be added to a life policy?
Related cover
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