Total Permanent Disability (TPD) Insurance

A permanent injury or illness can make it difficult or impossible to return work. TPD  insurance can provide a financial safety-net to help support you and your family, and pay for medical and rehabilitation costs.



What is Total Permanent Disability (TPD) Insurance?

Total Permanent Disability (TPD) insurance provides for you if you were to become permanently disabled due to accident or illness and are unable to work in any capacity in any occupation based on your previous education, skills, training or experience.

Total Permanent Disability Insurance provides you with a lump sum payment, giving you the means to access the best medical and rehabilitation treatments, and providing you with financial security so you can go on making the most of your life.

You must be employed in a gainful (paid) occupation to apply for TPD.

What TPD insurance covers

TPD insurance pays a lump sum if you become totally and permanently disabled because of illness or injury.

Each insurer has a different definition of what it means to be totally and permanently disabled. It can cover you for either:

Your own occupation — you’re unable to work again in the job you were working in before your disability. This cover is more expensive and is usually only available outside super.

Any occupation — you’re unable to ever work again in any job suited to your education, training or experience. This cover is cheaper but has a higher threshold to claim, so it’s less likely to pay out.

Activities of Daily Living — you’re totally and permanently unable to perform at least two of the five Activities of Daily Living without the physical assistance of another person.

Retrieved from TAL

TAL’s 2020 TPD Claim Statistics based on Age and Gender

Highest claim percentages in 2020 were males at 68% of claims and aged between 46- 55 years of age.

Claims statistics based on total number of Total and Permanent Disability Insurance claims paid by gender and age by TAL Life Limited and Asteron Life & Superannuation Limited between 1 January 2020 and 31 December 2020. Age of claimant based on age at the date of event.


Decide if you need TPD insurance

When deciding if you need TPD insurance, and how much, think about the expenses you’ll need to cover if you were permanently disabled and unable to work. These could include:

  • repaying debts such as a mortgage or credit card
  • living expenses for you and your family
  • medical and rehabilitation costs

Also think about what you have that could help pay for these costs. This could include:

  • private health insurance that can help pay for medical expenses
  • if you have trauma or income protection insurance, that can help replace lost income. You may hold these insurances through your super fund
  • any savings or investment you could sell
  • what support from family or friends may be available

The gap between the amount you have and the amount you’ll need can be a guide as to how much TPD cover you may need.

Compare TPD insurance policies

Before you buy TPD insurance, compare policies to make sure you get the right one for you. Check:

  • if it covers ‘your own occupation’ or ‘any occupation’
  • exclusions
  • waiting periods before you can claim
  • limits on cover
  • premiums – now and in the future.

A cheaper policy may have more exclusions, or it may become more expensive in the future.

Always be sure to read the Product Disclosure Statement (PDS) before making any decisions regarding financial products.

If you need help deciding if you need TPD insurance, and how much, call our team at Keyperson Life Insurance on 1300 78 55 77 .

References:- (2021, 01 18). Retrieved from Money Smart:
Total and permanent disability insurance. (2021). Retrieved from TAL: