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TPD Insurance

What is TPD insurance?

20 Jun 2024

Life Insurance by Life Stage

The choices you make today can impact your long-term health, wealth and happiness. Understand the important role Life Insurance can play in key life events.


What is TPD insurance?

Total and permanent disablement insurance (TPD insurance) provides a lump sum cash payment if you become permanently disabled and are unable to ever return to work.

It’s important to think about how you would support yourself and your family if you lost your income as the result of a sickness or injury. Life and TPD Cover provide financial protection to assist with the most challenging circumstances.

At NobleOak, we understand that insurance terminology can sometimes seem confusing. This article will explain what is meant by ‘total and permanent disablement’ and provide detail about how TPD insurance works.

What does TPD insurance cover?  

TPD insurance provides financial protection in the event of permanent impairment due to sickness or injury. The scope of TPD cover falls into two broad categories: ‘Any Occupation’ and ‘Own Occupation’.

What does ‘Any’ or ‘Own’ occupation in my TPD insurance mean?

There are two broad categories of Total and Permanent Disablement insurance (TPD) – ‘Any Occupation’ and ‘Own Occupation’:

Own Occupation

This category covers you if you’re unable to work again in the occupation or field you had before you suffered the event resulting in your TPD condition.

‘Own occupation’ TPD insurance is often sought by people in specialised professions, such as specialist medical practitioners. For example, if a cardiac surgeon opts for ‘own occupation’ total and permanent disablement cover, they will receive a benefit payment in the event that they are no longer able to perform surgery – even if they are able to go into another line of work.

Any Occupation

In this category, you will be covered if you become disabled and are unable to work again in any field.

‘Any occupation’ TPD insurance usually incurs lower premiums compared to the ‘own occupation’ option. If you are seeking life insurance and TPD insurance for your self-managed superannuation fund, SIS legislation means you must have an ‘any’ occupation definition for your TPD cover.

Are there any exclusions under my TPD insurance?

NobleOak’s Total and Permanent Disablement (TPD) Insurance only has one standard exclusion: any disability or sickness caused by any intentional self-injury or attempted suicide while sane or insane within 13 months from commencement, reinstatement, or increase of the insurance cover (but only to the extent of that increase).

As well as the standard exclusion listed above, there may also be specific exclusions to your cover relating to existing health conditions that you live with. These exclusions are specific to you and are noted in any Special Acceptance Terms agreed with you at the time of application.

Learn more in our FAQs or speak to one of our friendly team members for more information.

Does life insurance cover disablement?

NobleOak’s TPD Insurance can be taken as an option within a NobleOak Life Cover policy. It can’t be taken as stand-alone cover

What is included in NobleOak’s TPD Insurance?

Up to $5 million cover paid as a lump sum
Our TPD cover pays a lump sum benefit of up to $5 million dollars. The TPD sum insured amount that you attain cannot exceed the amount of Life cover that you hold. As TPD is an option with Life cover, the Life cover amount will reduce by the amount paid for a TPD claim (as will trauma cover if that’s also taken as an option with life cover).

Financial Advice Benefit

We understand that you may need some professional advice to ensure that the proceeds of a total permanent disablement insurance claim payment are managed effectively. We will reimburse up to $2,000 of the costs of engaging a qualified financial adviser to prepare a financial plan, if we pay a benefit in excess of $200,000.

Future Increases Benefit 

You can increase your cover amount by the lesser of $100,000 or 20% of the original cover amount without the need to provide further medical evidence if one of a variety of allowable events occur, including taking out or increasing a mortgage at your primary place of residence or giving birth to/or adopting a child. The full list of allowable events is included in the PDS.

Fully underwritten cover 

We will ask you some questions about your health, lifestyle, and family medical history before accepting your application. This is called ‘fully underwritten cover’. Because NobleOak takes the time to get to know you upfront, this gives you more certainty at claim time.

This is a summary of only some of the features and benefits available through NobleOak’s Total and Permanent Disability Insurance. To find out more, read the Product Disclosure Statement (PDS) which sets out the standard terms, conditions, limits, definitions, exclusions, waiting periods, exclusion periods and information about taking a combination of cover. Policies, terms and conditions vary between insurance providers so always read the PDS and compare covers before you apply for insurance to consider what is right for you.

Getting the right life and TPD insurance for your needs

Life insurance can help safeguard your financial wellbeing in the case of unforeseen circumstances. By choosing the best life and TPD insurance for your needs, you can protect yourself and your loved ones against the financial impact of total and permanent disability and death.

How do I take out TPD insurance?

NobleOak’s TPD Insurance is available as an option within a NobleOak Life Cover policy. When applying, you can choose to be covered for ‘any occupation’ or ‘own occupation’. Your premiums will generally be cheaper if you choose the ‘any occupation’ option.

If you include NobleOak’s Total and Permanent Disablement Cover within your Life Cover, then any approved claim on your TPD insurance will reduce your life insurance cover by the amount of the TPD payment.

How much TPD insurance can you apply for?

Australian residents between the ages of 16-59 who take out life insurance can apply for up to $5 million in TPD cover with a guaranteed renewable age up to 75 years old. The TPD sum insured amount you attain cannot exceed the amount of life cover that you hold.

How much TPD insurance do I need?

Everyone’s circumstances are different.

When evaluating how much life and TPD insurance you need, consider the income you currently earn and how much you and your family would need if you were never able to work again. While living with a disability you might not be able to work, and you might also have additional expenses such as:

  • Access to specialised medical services
  • Home renovations and modifications
  • Aids such as wheelchairs, prosthetic devices, screen readers, or assistance animals
  • A daily or weekly carer
  • Home help like cooking, gardening, cleaning, nannies or meal deliveries

1 in 3 people with a disability need help from people they live with. Your partner or family member may have to reduce their work commitments and lose wages to care for you.

Even if you don’t earn an income right now, TPD insurance could provide significant support for your finances if you were to become disabled. This additional income stream can give you and your family future financial security.

Use our Life Insurance Calculator for guidance on how much TPD you may need for your personal circumstances.

Award-winning life insurance 

NobleOak provides quality life insurance with competitive premiums and exceptional service. That is why we are Australia’s most awarded direct life insurer and the only life insurer to win the Canstar Outstanding Value Award for Direct Life Insurance for nine consecutive years from 2016 to 2024.

We are dedicated to helping you find the best cover for your circumstances. To get started, request a quote today. You can also contact us to ask our friendly team about life Insurance and total permanent disablement insurance.

Disclaimer: Any financial product advice is general in nature only and does not take into account your individual circumstances, objectives, financial situation, or needs. Before acting on it, please consider the appropriateness of the information, having regard to those factors. Any third party websites or tools referred to are subject to their own terms and conditions and NobleOak Life Limited makes no representation or warranty as to any information on those websites. Persons deciding whether to acquire or continue to hold life insurance issued by NobleOak Life Limited should consider the relevant Product Disclosure Statement and Target Market Determination for the product. NobleOak Life Limited ABN 85 087 648 708 AFSL 247302.

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