Own occupation vs any occupation TPD: what's the difference?

Total and permanent disability (TPD) cover pays a lump sum if you're unlikely to ever work again. But ‘unlikely to ever work again’ can be measured in different ways, and the way your policy measures it is called the TPD definition.

Own occupation

An ‘own occupation’ definition asks whether you're unlikely to ever work again in your own occupation. For example, a surgeon who loses fine motor control in one hand may be unable to operate again, even though they could teach or consult. Under an own occupation definition, that may be enough for a claim.

Any occupation

An ‘any occupation’ definition asks whether you're unlikely to ever work again in any occupation you're reasonably suited to by your education, training or experience. Using the same example, if the surgeon could reasonably work as a lecturer or consultant, a claim under an any occupation definition may not be paid.

Other definitions

Some policies use other tests, such as whether you can do everyday activities (washing, dressing, eating, moving around) without help, or definitions for people who aren't in paid work, such as those caring for a home and family.

Why it matters for super

Super law only lets money leave super when a condition of release is met. For TPD, that's ‘permanent incapacity’, which lines up with an any occupation test. So since 1 July 2014, new TPD cover inside super generally uses an any occupation definition. Own occupation TPD is held outside super.

Some insurers offer ‘super-linked’ TPD, where the any occupation part sits in super and the extra own occupation part is held outside super, linked to it. Part of the cost comes from super and part from your pocket.