Total Permanent Disability (TPD)

Total Permanent Disability, or TPD, is an insurance benefit often included with whole life or term life policies. It pays out when a person is judged to be permanently disabled, based on conditions that differ between insurers. When the conditions are met, the policy usually pays a lump sum similar to the death benefit.

If an insurance policy includes TPD and a person becomes permanently disabled in a way the insurer accepts, the policy can pay a large one-time amount.