Total Permanent Disability (TPD) is a phrase
used in the
insurance industry. Generally speaking it means that
because of a sickness or injury a person is unable to work
in their own or any occupation for which they are suited by
training, education or experience. An individual or group of
individuals can insure themselves against it, often times as
part of a life insurance package or sometimes separately.
Insurance companies often have slightly different definitions of what determines permanent disability, however typical definitions would include:
- Loss of two of: eyes, arms or legs.
- Absence from work for six months due to an accident or illness, without expectation of returning to work.
TPD differs from income protection insurance in that the insured person must be permanently disabled for the insurer to pay out, rather than just absent from work for an extended period of time.