Personal risk cover
Total & permanent disability cover
We help you understand total and permanent disability cover and arrange a policy that pays a lump sum if illness or injury permanently stops you working. No pressure, no jargon, just clear advice tailored to your situation.
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The wording, not the diagnosis, decides if it pays.
Two people with the same condition can get different answers, depending on one word in the policy. That word is where we focus.
The cover for the worst case
A lump sum if you can never work again
Total and permanent disability insurance, usually shortened to TPD, pays a single lump sum if illness or injury leaves you permanently unable to work. It responds to the worst case: not a few months off, but a condition serious enough that you are unlikely to earn an income again. The payout is yours to use as you need, whether that is clearing the mortgage, paying for care, or replacing lost income. The detail that decides almost every claim is the definition written into the policy, and that is where most cover quietly differs. Below we explain in plain English how TPD works, the one distinction that matters most, what the lump sum is for, and how we help you arrange the right cover.
Where it goes
What the lump sum is for
A TPD benefit is a single payment, not a regular income, meant to deal with the lasting financial impact of never working again. It is yours to keep and use as you see fit, and you do not repay it if you later recover.
Where the lump sum goes
- Clear debtPay out the mortgage and loans so the household is not servicing them on less income.
- Home and vehicle changesModifications to suit a permanent disability.
- Future incomeReplace, in one lump sum, the earnings you can no longer bring in.
- Care and medical costsFund ongoing treatment, rehabilitation and support.
The decision that decides the claim
Own occupation vs any occupation
This is the single most important thing to understand about TPD. A claim is assessed against the definition in your policy, not your diagnosis. The wider the net of jobs the test covers, the harder it is to meet.
Own occupation
Your one occupation
Cover responds if you can no longer do this job, even if you could do some other kind of work.
Broader · easier to meet · usually outside super
Any occupation
Every job you are suited to
Cover responds only if you cannot do any of them, by your education, training or experience.
Stricter · harder to meet · default inside super
At claim time
How a TPD claim works
Because the definition drives the outcome, two people with similar conditions can get different results depending on which one they hold. We help you assemble the evidence and manage the claim with the insurer.
From event to payment
- 1A permanent condition stops workIllness or injury serious enough that you are unlikely to return to work.
- 2You and the insurer gather evidenceMedical reports, specialist opinions and your work history.
- 3Assessed against the definitionThe evidence is measured against the exact wording in your cover.
- 4The lump sum is paidOnce accepted, a single amount for you to use as you need.
A structural choice
Holding cover inside vs outside super
Where the policy is held changes what it costs you day to day, the tax, and how a claim is paid.
Inside super
Held through your super fund
- Cash flow
- Premiums come out of your super balance, not your take-home pay
- Cover available
- Often more limited; some cover and definitions are restricted
- At claim time
- Benefit is paid to the fund trustee first, which can add steps and conditions
- The trade-off
- Cheaper on cash flow now, but it erodes your retirement balance
Outside super
Held in your own name
- Cash flow
- Premiums are paid from your own cash flow
- Cover available
- Full range, including own-occupation TPD where eligible
- At claim time
- Benefit is paid directly to you, your family, or your estate
- The trade-off
- Costs more from cash flow, but cleaner and more complete
Sizing the cover
How much TPD cover do I need
The right amount comes from your commitments rather than a standard figure. Default cover inside super is usually a modest standard amount, not calculated from your income or debts, so for many higher earners it falls well short.
What the cover must do
- Debts to clearEspecially the mortgage, so loans are not serviced on a reduced income.
- Future incomeThe earnings you could no longer make, scaled to retirement.
- Care and modificationsSpecific to living with a permanent disability.
- Cover you already holdCount default super TPD so you top up rather than double up.
Why a specialist
TPD looks simple. The wording is not.
A lump sum if you cannot work sounds straightforward, but the wording that decides a claim is easy to miss. We read it closely, then stand beside you at claim time.
Where we add value
- Read the definitions, not priceOwn versus any occupation matters more than the premium.
- Check your super coverConfirm what your default cover really provides before you act.
- Support at claim timeWe help gather the medical evidence and manage the claim.
Two people, the same condition, different answers. One word in the policy decides it.
FAQs
Frequently asked questions
Is TPD insurance worth it?
That depends on your circumstances, and we cannot give personal advice here. As a general guide, it tends to matter most if you rely on your income to support a family or service a mortgage and would face real hardship if you could never work again. It is worth weighing up for parents, for younger people protecting decades of future earnings, and for those nearing retirement wanting to protect their savings against a late-life setback.
Is TPD insurance tax deductible?
Generally, TPD premiums on a policy held outside super are not tax deductible to you personally, which is different from income protection. Where TPD is held inside super the treatment differs again, and the tax on any payout can also vary depending on the structure and your circumstances. This is general information only, so check your own position with your accountant or the ATO.
How is TPD assessed or defined?
A TPD claim is assessed against the definition written into your policy, using medical evidence and information about your work history and capacity. The two common definitions are own occupation, which tests whether you can do your own job, and any occupation, which tests whether you can do any job you are reasonably suited to. Any occupation is the harder test to meet. It is the wording, not a general view of being unable to work, that decides the outcome.
Can I hold TPD in super?
Yes. Many people hold TPD inside their superannuation, and most super funds include some default TPD cover. The trade-off is that super-based TPD typically uses the stricter any-occupation definition, the default amount is often modest, and the cover can reduce or lapse over time. Own-occupation cover is generally only available outside super. It is worth checking what your super cover actually provides rather than assuming it is enough.
TPD vs income protection, what is the difference?
They cover different things. TPD pays a single lump sum if illness or injury permanently stops you working, for a lasting inability to earn. Income protection pays a monthly benefit, generally a portion of your income, while you are temporarily unable to work and recovering. One is a one-off payment for a permanent situation, the other an ongoing income for a temporary one, and many people hold both.
How much TPD cover do I need?
Enough to clear your debts, fund any care or home modifications a permanent disability would need, and replace the income you could no longer earn over the years ahead, less any cover you already hold inside super. Because default super amounts are a standard figure rather than calculated from your situation, they often fall short for higher earners. An adviser can help you size it to your commitments.
Protect against the worst case
Get the definition right before you need it
A no-obligation chat with a specialist who reads own-occupation versus any-occupation wording, checks your super cover, and sizes it to your commitments. No separate advice fee for our advice.