Insurance Planning

Total and permanent disability insurance

Definitions of disability

Whilst “any occupation” and “own occupation” are the two main definitions of total and permanent disability offered by insurers there are others that may be offered. For example, depending on your age, occupation, pastimes and medical history, an insurer may offer you one of the following definitions with regards to a total and permanent disability insurance policy:

  • A “homemaker” definition. Importantly, to claim on this definition, you will need to be assessed by the insurer, after consideration of medical evidence, the period of disablement (usually at least three months) and ongoing supervision by a Medical Practitioner (and have undergone all reasonable and usual treatment including rehabilitation). The assessment will need to demonstrate that you are incapacitated to such an extent, solely because of a sickness or injury, as to deem you unable to ever carry out all normal household duties namely, cooking and preparing meals, cleaning the house, washing and drying clothes, shopping for groceries and looking after children.