Total Permanent Disability Insurance – Frequently Asked Questions
- 17/07/2025
- Posted by: Appeal Avenue
- Category: FAQs
What is Total Permanent Disability Insurance?
Total permanent disability insurance, or loss of independence insurance as it is sometimes known, is designed to pay out a one-off, tax-free lump sum in the event that you become permanently ‘disabled’ due to an illness or injury.
This type of insurance is usually an extra benefit included within a critical illness policy. You might have taken out critical illness insurance to run alongside a mortgage, or to protect you in case you needed to give up work following a serious illness.
What illnesses are covered by Total Permanent Disability Insurance?
A claim under this type of insurance is not based on your diagnosis or the illness you are suffering from but is instead based on how your condition impacts you.
Insurance companies have different rules as to what they define as ‘total permanent disability’ or ‘loss of independence’, but generally their criteria fall into two categories. The first being your ability to continue working and the second being your ability to carry out activities of daily living or, household tasks. Your critical illness policy terms and conditions will tell you what your insurer defines as a total permanent disability.
Does every Critical Illness policy include cover for Total Permanent Disability?
Many critical illness policies include cover for ‘Total Permanent Disability’ or ‘Loss of Independence’ but not all. Check your policy documents or speak to us if you’re unsure what your cover includes.
Is there a time limit for making a Total Permanent Disability claim?
Yes—most insurers require you to notify them of your condition within a specific timeframe, often within six months. If you delay your claim due to the emotional impact of your diagnosis, or because you didn’t realise you had cover, the insurer may consider this when reviewing your claim. It’s always best to contact them as soon as you can.
Why was my Total Permanent Disability claim turned down?
Insurers usually reject these claims because either your condition doesn’t meet the policy’s definition of a Total Permanent Disability, or because the Insurer believes there was something important you didn’t tell them about when you applied for the policy. If you’re unsure why your claim was declined, book a free appointment with us at Appeal Avenue—we can help you understand the reasons and suggest your next steps, at no cost.
Can I appeal a denied Total Permanent Disability claim?
Yes. If your claim has been refused and you don’t agree with the decision, you can challenge it. Appeal Avenue can review the insurer’s decision, explain the policy terms, and guide you through the appeals process for free. If you’d like us to take a more active role, we offer a no win, no fee advocacy service where we can handle the appeal on your behalf. You’ll only pay if we’re successful.
When can I take my complaint to the Financial Ombudsman Service?
If you’ve made a complaint to your insurer and are still unhappy with their decision after eight weeks (or sooner if they’ve issued a final response), you can take your case to the Financial Ombudsman Service. They offer a free and independent review of insurance disputes. We can support you throughout this process if you’d like guidance or help making your case.
Can you help me appeal a Total Permanent Disability decision?
Absolutely. At Appeal Avenue, we specialise in supporting people who’ve had Total Permanent Disability claims rejected. We’ll look at your policy terms, ask you about how your medical condition impacts you, and review how the insurer reached their decision. If we believe the insurance companies decision may be incorrect, we’ll guide you through your options and explain how to challenge it—all for free. If you’d prefer more hands-on support, we also offer a no win, no fee advocacy service where we can act on your behalf—so if we’re not successful, you won’t pay a thing.