Total & Permanent Disability (TPD).

Richard is a 53-year-old employed mechanic earning $80,000 per year.  He is married to Rachel who works part-time, and has children, both of whom are married and living out of home.  His home is valued at $650,000 with a mortgage of $150,000.  He has credit card debt of $25,000 and a motor vehicle loan of $20,000.

Richard loves to go out dirt bike riding in the bush with his mates on the weekend.  One weekend, he hits a ditch and comes off his bike, causing him to suffer a C2 vertebral injury.  Richard becomes a quadriplegic, is permanently disabled and unable to work again in the future.

Thanks to Richard having an astute financial advisor who had reviewed his circumstances two years prior, Richard had TPD Insurance of $800,000 in place.  This meant that Richard was able to:

1. keep his home by paying off all his debts;
2. have funds in place to cover all his medical expenses; and
3. make the necessary house modifications to enable him to continue living at home after coming home from hospital.