What are a PDS and TMD, and why do they matter?
Key points
- The insurer writes both documents, not All Insured.
- The PDS explains what's covered, what isn't, costs and your rights.
- The TMD describes who the product is designed for.
Before you take out personal insurance, you'll come across two documents from the insurer: the Product Disclosure Statement (PDS) and the Target Market Determination (TMD). Both are written by the insurer that issues the product.
Product Disclosure Statement (PDS)
The PDS explains the product in detail, including:
- what the policy covers and the definitions it uses
- what it doesn't cover (exclusions)
- how premiums are worked out and how they can change
- how to make a claim
- your cooling-off rights and how to cancel
- how to complain
The PDS for life insurance can be long. If you only read a few parts, start with the definitions for the cover you're considering, the exclusions, and how premiums can change.
Target Market Determination (TMD)
Since October 2021, product issuers have had to publish a TMD for most financial products. It describes the group of consumers a product is designed for, any conditions on how it should be distributed, and when the issuer will review it. It's not a recommendation for you personally, but it helps you see who the product was built for.
Where to find them
Insurers publish their PDS and TMD documents on their websites, and the business that contacts you, or the insurer, can give you the documents for any product you're quoted on. All Insured doesn't host or reword them.
Other documents you may receive
If your application is accepted, the insurer sends a policy schedule setting out your cover, premium and policy details. See how a quote request works.
This guide is general information only. It doesn't take into account your objectives, financial situation or needs. Consider the relevant PDS and TMD from the insurer before making a decision.
