TPD Insurance Home Duties – Important Considerations For Homemakers
TPD insurance is a risk insurance product that is meant to pay a lump sum to someone who is gainfully employed in case of long term disability that leads to his or her inability to ever go back to work.
Ideally the payout should help you discharge any outstanding debts you may have and pay for your ongoing living expenses and medical costs.
However, it is worth noting that TPD also extends to individuals who are in non-remunerated roles within the home in form of TPD insurance home duties.
How it works
This insurance product is designed for people that use their personal exertion to carry out a range of functions referred to as home duties. The purpose of such duties is to maintain the place of residence and care for the family. This group of people includes both men and women, with or without dependants, and regardless of whether they are in a life relationship. When someone performing home duties becomes permanently unable to continue doing so due to serious illness or injury, the TPD insurance home duties provision makes it possible to pay for and organize someone else to undertake these duties.
What it covers
Part of the lump sum that is payable under the TPD insurance home duties provision may be invested, while the rest of it is used to meet the replacement cost that would be incurred when someone else undertakes the home duties. However, if you are in such a situation, you would probably also have to meet significant additional expenses including medical bills that may not be covered by your health insurance, counseling, rehabilitation costs, personal nursing care and capital costs to make changes to the home or car. More information here about TPD Insurance.
The definition for total and permanent disability in the case of a person performing home duties differs from that for a person who is employed. The total and permanent disability insurance home duties provision only applies to individuals who have been unable to perform their normal domestic duties or leave their home unaided for at least six consecutive months. In addition, the person should not be able to engage in any form of employment. You will also have to have undergone reasonable treatment, including rehabilitation for the injury or illness.
The TPD insurance home duties provision usually goes through more processing. For instance, at the end of the six months, you will have to provide medical evidence indicating that you are unable to perform normal domestic duties and will require indefinite ongoing medical care. This medical evidence is used to identify the level of incapacitation. Read: How to get a car loan without job history
Is it appropriate?
Although the TPD insurance home duties provision is appropriate for most people fully engaged in home duties, it should not be taken on the basis that nothing else is available. You need to understand what is or is not covered under the policy. For instance, there is a lot of subjectivity in the definition of this provision that may make the claims process complicated. It is therefore advisable to seek professional advice from a financial consultant before taking out this type of TPD insurance policy.