Let's give TPD a second look
However, as Covid-19 and ongoing bad news on claims has prompted insurers to set tougher entry requirements for some categories of income protection the product may be worth a second look.
In Australia, TPD has been a consistent presence on the insurance scene partly because it has been an easy way to incorporate some disablement cover into the insurance sold with superannuation plans in that market.
It has also been widely claimed on, leading to concerns about sustainability in that market, as insurers have grappled with claims rising sharply from two causes: an increase in mental health causes of total disability and more aggressive pursuit of claims by clients of claims
management companies.
The claim process issue is one reason why TPD has become less popular in New Zealand.
Click the button below to subscribe and will have free unlimited access for a limited time to full article and all other articles on the site.
You will also be able to comment on articles on Good Returns.
