This is a fictional scenario, created to illustrate the potential benefits of taking out life insurance and TPD cover. 

As keen surfers and ocean kayakers, Dave and Susan’s dream was to own a home near the beach. After a few years of disciplined saving, the couple finally had enough for a home deposit and started to search for a place of their own. In less than two months, they found a newly renovated two-bedroom house, just 5 minutes’ walk from their local beach.

Dave and Susan applied for a home loan and were successful. They made an offer on the beachside home – and it was accepted. Delighted, the couple posted a photo of themselves on social media, standing outside their new home in front of the ‘sold’ sign. Then in a few weeks, the couple moved in and set up house.

Protection against the unknown

Both Dave and Susan worked full time, and were in the habit of putting away money regularly. So they felt comfortable about meeting their mortgage repayments. But they also knew that if something happened to one of them, they could quickly fall behind – putting their beautiful home at risk. So the couple decided to look at the life insurance options available to them.

While they already had Life cover in place, which would pay out a lump sum if they passed away or became terminally ill, they did not have any cover to protect them if an accident or illness led to a permanent disability. Dave and Susan were keen to get the right kind of cover to suit their needs. Because they both led very active lives, which involved sports like skiing and surfing, they decided to choose to add an optional Total and Permanent Disability (TPD) cover to their policy, which would provide them with a lump sum payment if they were permanently disabled.

About 18 months after taking out their life policy, Dave damaged his back in a surfing accident.

Thinking the injury maybe permanent and he would be unable to work, Dave was reassured that a TPD payout could be used to help meet their mortgage repayment and modify the beach home so he could get around in a wheelchair more easily. The modifications and the ability to still meet their mortgage repayments without Dave working, would mean the couple could stay in their home – and make the best of their new situation.

Fortunately, Dave was lucky. His injury was not permanent, so he didn’t need to call on his TPD cover. With the help of rehabilitation, Dave has regained full mobility and the couple are back to enjoying their beachside lifestyle.

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Things you should know

This article is intended to provide general information of an educational nature only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice.

Life Insurance provided by AIA Australia (Life Insurance) and Income Protection provided by AIA Australia (Income Protection), as described on this website, are provided and issued by AIA Australia Limited ABN 79 004 837 861, AFSL 230043 (AIA Australia) and distributed by the Commonwealth Bank of Australia ABN 48 123 123 124, AFSL 234945 (CBA). AIA Australia is not part of the CBA Group. CBA and its related entities do not sell, issue or guarantee the obligations or performance of AIA Australia or the products it offers and these insurance products do not represent a deposit with or liability of either CBA or any of its related bodies corporate.

You should, before acting on this, consider the appropriateness to your circumstances and read the relevant Product Disclosure Statement (PDS) available at or by calling AIA Australia on 1800 491 588, 9am to 5pm, Monday to Friday (Sydney time), before deciding to acquire or continue to hold any of these products. Neither CBA nor any of its related corporations are authorised representatives or authorised representatives of AIA or our related companies. For more information on the financial services CBA provides, you should read CBA’s Financial Services Guide and Privacy Policy on If you purchase a Life Insurance and/or Income Protection policy, CBA is paid a commission which is a percentage of your premium.