Understanding Total and Permanent Disablement

Shawn Plummer

CEO, The Annuity Expert

What is Total and Permanent Disability Insurance?

Total and Permanent Disability (TPD) Insurance is a type of coverage that provides financial support if you are unable to work ever again due to a disability. This insurance typically pays out a lump sum amount to help cover expenses like medical costs, debt repayments, and future living expenses.

What Is Total And Permanent Disablement

How Does TPD Insurance Work?

  1. Eligibility Criteria: You must meet specific criteria to be considered “totally and permanently disabled.” This usually involves proving that you cannot return to your job or any other work suited to your training and experience due to your disability.
  2. Policy Types: There are different types of TPD insurance, such as ‘any occupation’ (cannot work in any job) or ‘own occupation’ (cannot work in your specific job).
  3. Claim Process: To claim, you must provide medical evidence of your disability. The insurer will review your claim based on their policy terms.
  4. Payout: If approved, you receive a one-time lump sum payment.

Examples of TPD Insurance Uses

  • Medical Expenses: Covering costs for treatment and rehabilitation.
  • Debt Repayment: Paying off mortgages, loans, and other debts.
  • Income Replacement: Providing funds for daily living expenses and future needs.

Comparison of TPD Insurance Policies

FeatureAny Occupation TPDOwn Occupation TPD
Definition of DisabilityUnable to work in any jobUnable to work in your specific job
Premium CostGenerally lowerGenerally higher
SuitabilityBroader range of occupationsSpecific to professional and high-risk jobs
What Does It Mean To Be Totally And Permanently Disabled


Total and Permanent Disability Insurance offers vital financial protection if you become disabled and can’t work. It’s important to choose a policy that fits your occupation and future needs. Understanding the differences between policy types and the claim process is key to making an informed decision.

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Frequently Asked Questions

Can total and permeant disability be taken away?

No, 100% total and permanent disability (TPD) is an irreversible condition that cannot be taken away. It signifies a complete inability to work due to disability, with no expectation of recovery, unlike temporary disabilities that may improve over time.

What are the four main types of permeant disability?

Physical Disability: Permanent impairment of limbs or body function.
Sensory Disability: Long-term loss of senses like sight or hearing.
Intellectual Disability: Permanent cognitive impairments.
Psychological Disability: Ongoing mental health disorders that limit daily functioning.

What’s the difference between permanent disability and SSDI?

Permanent disability is a lasting physical or mental impairment that restricts daily functioning. SSDI (Social Security Disability Insurance) is a U.S. government program that provides financial assistance to individuals with disabilities, including permanent ones. While permanent disability describes a condition, SSDI is a support system for those with such disabilities.

Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed financial professional, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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