What is Permanent Disability Insurance?
Permanent disability insurance (also known as Total Permanent Disablement insurance or TPD insurance) is a policy which pays a non-taxable lump sum benefit if you are unable to work in your own occupation due to illness or injury, and you are unlikely to ever be able to resume that occupation.
AIA Living Total Permanent Disablement
Total Permanent Disablement pays a lump sum if you become totally and permanently disabled and are unable to work as a result of an accident or illness. A payment may also be made if you are partially disabled.
The disability definition is based on not being able to work in your own occupation, not just any occupation that you might be able to perform.
From a financial point of view, permanent disablement is more catastrophic than death itself. Not only has your income-earning potential gone, but you remain alive and you have all the day-to-day consumption needs that everybody else has, such as feeding, clothing, caring, housing, heating, treating, transporting, communicating and entertaining. Permanent disablement is an expensive way to live.
|Minimum commencement age||16|
|Maximum commencement age||55 (60 for certain occupations)|
|Benefit type||Own Occupation|
Total Permanent Disablement insurance includes a comprehensive range of benefits:
Total Permanent Disablement Benefit
Receive a lump sum benefit payment if you become totally incapacitated through illness or injury, and you are considered unlikely to ever be able to resume work.
Receive a partial permanent disablement benefit of 25% of your total permanent disablement benefit up to a maximum of $100,000, if you suffer a partial permanent disability as detailed in the policy.
Financial and Legal Advice Benefit
After you receive a claim payment, get reimbursed for up to $2,500 (including GST) for financial planning fees paid to an accredited adviser or for legal advice from a legal professional approved by AIA.
Receive reimbursement of up to $15,000 (including GST) to cover the cost of purchasing specialist equipment, completing home alterations or modifications to your vehicle which are necessary as a result of the illness or accident leading to a claim.
Get reimbursed for up to $2,500 (including GST) for the cost of a psychiatrist or psychologist consultation and/or counselling where the support treatments and/or consultations directly relate to a claim under the Total Permanent Disablement Benefit.
Special Events Increase Facility
You can increase the amount of cover under your policy following certain life events, without any medical questions, examinations or tests. A premium will be applied to the additional cover.
Future Insurability Benefit
Increase your Total Permanent Disablement Benefit by up to 20% (subject to a maximum increase of $200,000) at every third policy anniversary without the need to provide further medical evidence.
Suspension of Cover Benefit
Flexibility to suspend your cover for up to 12 months if you:
No premium will be payable during the period that cover is suspended. No claim will be payable for any claim event that occurs during the period that cover is suspended.
Premium Conversion Facility
At any time before age 65, you can convert all or part of your Total Permanent Disablement Benefit from a Rate for Age premium structure to a Level premium structure without needing to produce further medical evidence.
Please refer to the Policy Wording for full details of all benefits and any associated terms and conditions.
Total Permanent Disablement insurance includes the following features:
The policy is underwritten by AIA New Zealand Limited, New Zealand’s largest life insurer. AIA New Zealand Limited has an AA (Very Strong) financial strength rating from Fitch Ratings.
24 x 7 Worldwide Cover
Whether you’re at home, travelling or working anywhere for any period (including overseas, even if you move overseas permanently), you remain insured.
Lump Sum, Tax-Free Benefits
Under current legislation, any and all benefits payable under the Total Permanent Disablement Benefit are paid as tax-free lump sum benefits, directly to the policy owner.
If any change is made to the underlying AIA Living policy in the future, and that change would be favourable to you, then the Enhancement Pass Back Benefit means that the enhanced change will automatically be applied (passed back) to your policy. Conditions apply.
If at any time during the 15 days following receipt of your policy you do not wish to continue with your cover (for whatever reason at all), you can return your policy for a full refund of all premiums paid.
Please refer to the Policy Wording for full details and any associated terms and conditions.
The Total Permanent Disablement policy wording is comprised of the following documents:
AIA Living Umbrella Policy Wording PDF
The Umbrella Wording is common to all AIA Living policies.
Total Permanent Disablement Policy Wording PDF
The Benefit Appendix is specific to the Total Permanent Disablement benefit.
AIA Vitality is a science-backed health and wellbeing program that supports and rewards you for making healthier choices.
Premiums for eligible insurance policies that cover you may be discounted in certain circumstances based on your membership and participation in the AIA Vitality program. You’ll receive an initial 10% premium discount in your first year.
A membership fee of $11.50 per month per member applies.
Check out our FAQs for answers to frequently asked questions.Get a Quote ›
- The above identifies and provides a brief summary only of the principal benefits under the policy. Please refer to the Policy Wording for full details of all benefits and the terms and conditions under which they are provided.