FAQ: What’s the difference between a TTD and TPD?

Understanding insurance terminology is key: TTD often refers to Temporary Total Disability (related to income protection), while TPD means Total and Permanent Disability (a lump sum from superannuation). PK Simpson can clarify the differences for your situation.

However, TPD cover isn’t the only item through which you can obtain the payments you need. Depending on your policy and the extent of your injuries, you may be able to claim total and temporary disability (TTD) benefits.

TTD benefits apply when an injury prevents you from working for a certain time period.

What is TTD?

TTD benefits are applicable when you are unable to work due to an illness or disability for a certain period of time.

For example, if you break your hip and need six months to recover, the TTD payments will allow you to sustain your standard of living throughout the time you are forced to take off. In some cases, TTD payments will cover you if you return to work but are earning less.

Bear in mind that the size of your payments under a TTD claim will vary. Given particular circumstances, you may be able to receive compensation until the age of 65.

Be aware that TTD is typically inaccessible when your injury is work-related.

How a TPD differs from a TTD

A TPD delivers financial benefits when you are no longer able to work due to a mental or physical disability or ailment. In order to claim TPD benefits, you need to prove that your impairment prevents you from working at your normal occupation or any other position that requires you to use the instruction or education you received in the past.

The primary difference between TPD and TTD claims is that the latter provides benefits for a limited amount of time. TTD benefits are most applicable when you have sustained an injury that will hinder you from earning an income, but you will eventually recover and be able to return to work.