Total Permanent Disability (TPD)
TPD Insurance
TPD insurance provides a lump-sum payment if you become permanently unable to work due to illness or injury - giving you the financial support to rebuild your life.
What Does TPD Insurance Cover?
If you're permanently disabled and can never work again, TPD insurance provides a lump sum to help you cover:
Medical & Rehabilitation
Ongoing treatment, therapy, and rehabilitation costs
Home Modifications
Wheelchair access, bathroom modifications, mobility aids
Living Expenses
Day-to-day costs when you can no longer earn an income
Debt Clearance
Mortgage, car loan, and other outstanding debts
“Own Occupation” vs “Any Occupation”
The definition of “disability” in your policy makes a big difference to when you can claim. There are two main types:
Own Occupation
You're considered disabled if you can no longer perform your specific job. For example, a surgeon who loses fine motor skills would qualify - even if they could work in another role.
More comprehensive but higher premiums
Any Occupation
You're considered disabled only if you can't perform any jobyou're reasonably suited to by education, training, or experience. This is a stricter definition.
Lower premiums but harder to claim
Important:“Own occupation” policies cannot be paid through super. If you want own occupation cover, it must be held outside your super fund.
How Much TPD Cover Do I Need?
The appropriate level of Total and Permanent Disability (TPD) cover depends on individual circumstances. Because the benefit is generally intended to support the policyholder over the long term, ongoing costs are typically considered alongside immediate financial obligations.
Some commonly considered factors include:
- Ongoing medical care and rehabilitation
- Home and vehicle modifications for accessibility
- Living expenses for the rest of your life
- Clearing all existing debts (mortgage, loans)
Personalise Your Cover
Payout Amount
Lump-sum benefit amounts vary by insurer; the level chosen generally reflects individual circumstances.
Payment Method
Hold your policy inside or outside super- noting that own occupation is outside super only
A common approach is to hold a base level of “any occupation” TPD through super (at a lower cost) and top up with an “own occupation” policy outside super for more comprehensive protection. We can help you understand how different options may be combined.
Plan for the Unexpected
We'll help you find the right level of TPD cover to protect your future - no matter what happens.