Total Permanent Disability
Total and Permanent Disability cover pays a tax-free lump sum if illness or injury permanently stops you working. It’s the cover for the hardest scenario: a future where the salary doesn’t come back.
How the cover actually works.
A tax-free lump sum paid in one payment when illness or injury permanently stops you from working, rather than a series of ongoing monthly instalments
Typically used to clear the mortgage, fund home modifications, and rebuild savings in one go, rather than paying out gradually like a monthly income protection benefit
The definition of disability is critical: ‘own occupation’ pays if you cannot do your specific job, while ‘any occupation’ pays only if you cannot do any job at all
This cover can be structured as a standalone policy or accelerated under an existing life policy, which usually costs less but reduces the life sum paid later
This page is for you if…
Tradespeople and physical-occupation workers
Single-income households with a mortgage
Professionals whose income depends on a specific skill (surgeons, pilots, dentists)
Anyone who’d need to retrofit a house or buy long-term care if disabled
Two ways to get TPD cover sorted.
Going it alone
You compare policy wording and exclusions yourself, insurer by insurer.
No one flags it when your circumstances change and your cover no longer fits.
If a claim is ever declined, you deal with the insurer directly.
The cheapest premium today isn't checked against what it actually covers.
With a Smiths adviser
We compare TPD cover across the providers we work with, in plain English.
We review your cover again as your circumstances change, not just once at the start.
If you ever need to claim, we deal with the insurer on your behalf.
You get one recommendation based on your situation, not a single insurer's product.
Talk to an adviser about this.
Thirty minutes with a licensed Smiths adviser, no obligation. Leave your details and we'll be in touch, usually within one working day.
Full audit of your existing cover, fund, and policy wordings
Comparison across the providers we work with
A clear written recommendation in plain English
Implementation paperwork handled by us, not you
Why this is easier with an adviser.
Choose between own-occupation and any-occupation based on your specific job and salary risk.
Structure standalone vs. accelerated TPD against your existing life cover.
Size the lump sum to clear the mortgage + fund modifications + reseed retirement.
Coordinate with income protection so the two products complement, not duplicate.
The providers we work with for this cover.
TPD cover
Our advice covers the providers shown here, not every insurer or KiwiSaver provider in New Zealand. The panel can change, and we'll always confirm it when we give you advice.
Common questions about TPD cover.
ACC pays weekly compensation, not a lump sum, and only for accidental injury. Illness, the more common cause of permanent disability, isn’t ACC-covered.
Income protection pays a monthly benefit for a defined period. TPD pays one lump sum and ends. Most people need both, structured together.
It’s cheaper, but it sets a high bar, and the insurer can argue you’re fit for some other job and decline. For specialist occupations, own-occupation is usually worth the extra premium.
Yes, TPD is often arranged as an add-on to life cover, or alongside trauma insurance, so the right structure depends on what each policy actually responds to.
Other services in this area.
Talk to the team.
Book a free review with Craig, Guy or Henry. No fees, and we're there if you ever need to claim.