Total and Permanent Disability Insurance

Total and Permanent Disability (TPD) Insurance provides a lump sum payment if you become totally and permanently disabled. Depending on the definition you choose in your policy, you will be covered if you cannot work in varying capacities. The TPD payout can be used to help cover rehabilitation costs, repayment of debts and the cost of living for you and your family. Payments are not usually made until the disability has been evident for six months, and the insurer deems that you are unlikely to work again based on the definition in your particular policy. 

What options do I have?


Definition of occupation permit both an ‘any occupation and ‘own occupation’ definitions:

  • Any-occupation TPD - Total and Permanent Disability claims are assessed with reference to your ability to ever again perform your own occupation or any other occupation that you are reasonably suited to by way of your education, training and experience.
  • Own-occupation TPD - Total and Permanent Disability claims are assessed with reference to your ability to ever again perform your own occupation.

Does TPD Insurance differ across Insurers?

Generally TPD policies are very similar across different insurance companies. However make sure you read the insurer’s Product Disclosure Statement carefully to see what conditions are included and excluded.

How much does TPD Insurance cost?

TPD cover has relatively low premiums as compared to other types of insurance. Like most insurance, your TPD premiums will vary according to:

  • Age
  • Gender
  • Smoking status
  • Occupation

Tax treatment

Insurance companies have recently added flexibility in their products by allowing a split TPD arrangement.  This allows approximately 75% of the TPD premiums to be tax deductable, whilst also allowing the own occupation definition to be included and linked to the same policy.