First things first, we think the National Disabilities Insurance Scheme (NDIS) is a great idea. Don’t get me wrong- everyone deserves the right to have an equitable and fair level of care no matter what state they live in.
But (and this is a big BUT) the title of the scheme is unnervingly misleading. The NDIS doesn’t actually give you an income for life or lump sum payout if you were to become permanently disabled. And in no way does it actually replace the need for full personal insurances.
The National Disability Insurance Scheme is essentially an extension of Medicare. Unlike the name implies, the scheme (and Government) do not provide either Income Protection or Total and Permanent Disability Protection (TPD) Insurance. What NDIS does provide is assistance and essential services to those who are permanently disabled. These include appliances, aids, home modifications, nursing care, therapies and guide dogs.
What’s more alarming is that the NDIS’ definition of Permanent Disability is stricter than that of Total and Permanent Disability (TPD) Insurance. The scheme does not cover those who cannot work due to sickness or injury. So those who would qualify for a full TPD or Income Protection payout from their insurer would not necessarily be supported by the NDIS scheme.
Scary stuff. Spread the word. Don’t fall into the trap of thinking disability insurance is now covered by the government!
Want to know you and your family have a secure financial future? Call 08 9323 3000 today to get a completely individualised financial plan (inc all your insurances).
Nicholas Hart is Empire Financial Group’s UK pension transfer expert. He draws on almost a decade and a half of financial service experience in the UK and Australia, and specialises in delivering strategic advice to UK expats, on a wide range of areas including superannuation, investment and insurance solutions.