Ownership of TPD in your personal name

If you hold your TPD policy in your own name, the costs of the premium will be funded from your own personal cash flow.

Advantages

  • You may get your claim quicker as the claim will be paid out to you directly instead of going through a super fund.

Disadvantages

  • The premiums are paid out of your after tax income, which reduces your cash flow; and
  • The cost of the insurance held through a personal name is generally higher than for a Group income protection policy held within a super fund.

When TPD is recommended to be held in your personal name

  • You have sufficient cash flow to cover the premiums;
  • You wish to avoid any benefit payment being impacted by superannuation benefit payment rules.
The Dover Group