TPD insurance if you can't work again
Total and permanent disability (TPD) insurance pays a lump sum if illness or injury means you're unlikely to ever work again, as defined in your policy.
- A lump sum for medical costs, home changes and debts
- ‘Own occupation’ or ‘any occupation’ definitions
- Can be held in super, with an ‘any occupation’ definition
You'll be contacted to prepare your quotes.
TPD insurance at a glance
What it is
A one-off lump sum if you become totally and permanently disabled, as defined in your policy.
Inside or outside super
TPD cover can be held in super, but new cover inside super generally uses an ‘any occupation’ definition. ‘Own occupation’ cover sits outside super.
Things to know
The TPD definition in your policy decides whether a claim is paid. It's one of the most important parts of the policy to understand.
What a TPD payment can help with
A serious illness or injury can change how you live as well as how you earn. People commonly use a TPD payment towards:
- Rehabilitation, treatment and medical costs
- Modifying a home or car
- Paying off a mortgage or other debts
- Replacing income you would have earned
- Ongoing care and support
You choose how much cover to ask for. We don't give personal advice. If you'd like personal advice, we can refer you to the insurer that issues the cover.
TPD terms worth understanding
Own occupation
You're covered if you can't work again in your own occupation. Generally only available outside super.
Any occupation
You're covered if you can't work again in any occupation you're reasonably suited to by education, training or experience.
Daily living
Some definitions look at whether you can do everyday activities, such as bathing, dressing or eating, without help.
Super-linked cover
Some insurers let you hold ‘any occupation’ cover in super and link ‘own occupation’ cover outside it, so part of the cost comes from super.
TPD insurance through super or out of pocket
You can generally hold this cover either way. Here's how the two compare.
Through super
- Premiums come out of your super balance
- New cover generally uses an ‘any occupation’ definition
- Your fund's trustee must also be satisfied you meet the super law test for permanent incapacity before releasing the money
- The payment may be taxed, depending on your age and your super's tax components
Out of pocket
- You pay premiums from your own money
- ‘Own occupation’ definitions may be available
- The benefit is paid directly to you
- Payments are generally not taxed
General information only. Funds and insurers set their own terms, and tax depends on your circumstances. Speak with a registered tax agent about tax.
Getting started takes three steps
You'll be contacted to prepare your quotes. Nothing to pay to ask.
Ask for a quote
Tell us which cover you'd like and how much cover you want, then add your name, mobile and email. It takes about two minutes, with no health questions.
You're contacted
You'll be contacted to confirm the cover and amounts you'd like, and your quotes are prepared.
Apply if you're ready
If you decide to go ahead, the business that prepared your quotes, or the insurer, will explain how to apply. The insurer assesses your application and issues the policy.
TPD insurance FAQs
What's the difference between TPD and income protection?
TPD pays a one-off lump sum if you're unlikely to ever work again. Income protection pays a monthly benefit while you're temporarily unable to work. Some people hold both.
Can I claim on more than one TPD policy?
If you hold more than one policy, for example in two super funds, you may be able to claim on each, subject to each policy's terms.
How long does a TPD claim take?
TPD claims often take longer than other claims, because the insurer needs to assess whether the disability is permanent. The Life Insurance Code of Practice sets standards for how subscribing insurers handle claims.
Do I have TPD cover in my super?
Many funds include default TPD cover. Check your latest annual statement or your fund's website.
What is a TPD definition?
It's the test in the policy that decides whether you're totally and permanently disabled. Definitions differ between insurers and policies, so read the PDS carefully and ask the insurer if anything is unclear.
Start the conversation today
It takes about two minutes. You'll be contacted to prepare your quotes. There's no cost to ask, and no obligation to go ahead.
Get a quote