Fact 1

A lump sum compensation payment will be given to you only when you are disabled due to which you cannot sustain your job. To get the lump sum compensation payment for TPD insurance, you have to be off work for at least 3 months; however some insurers may require you to be off work for up to 6 months as well. This time period is known as the waiting period and is mandatory for most TPD policies.

Fact 2

The price of the policy will depend on the waiting period, the insured amount and additional benefits if any. A shorter waiting period for disability insurance is suitable for people who have not kept funds aside for a rainy day. As far as possible, you should select an insured amount that will be adequate to pay off your debts and help you live a comfortable life. Inflation should be one of the factors that you should consider when you choose an insured amount.

Fact 3

TPD insurance can be purchased online by either visiting an Australian insurer’s website or an Australian insurance company’s website. To get a policy you will first have to ask for a quote and then purchase a plan keeping your needs in mind.

Certain eligibility criteria such as age and employment status may restrict your choice while purchasing a policy hence before purchasing a policy; you should contact a sales representative and ask for information. Most insurers offer information without pushing products on to buyers and these days, majority of the information you need is available online.