At a glance:
- Any Occupation TPD covers broader job categories based on education and experience.
- Own Occupation generally has easier claim approval but comes with higher premiums.
- Consider your occupation, job security, and potential income loss to choose the suitable TPD insurance type.
Living with a disability is challenging, and it is even more difficult when you cannot earn money for yourself. We need to take care of many expenses as an adult, such as utility bills, debt and mortgages, or rent. When you are permanently disabled, medical and rehabilitation costs are added to your list of expenses.
In this situation, total and permanent disability insurance is crucial; it not only allows you to stay on top of your expenses but also offers you peace of mind. Total and Permanent Disability (TPD) insurance pays you a lump sum if you become permanently disabled due to illness or an accident and cannot ever return to work.
Getting a TPD insurance quote is easy, but what is challenging is knowing what policy type suits you the best. You can insure yourself with a total and permanent disability insurance policy in two ways – ‘own occupation’ and ‘any ‘occupation’.
What is “Own Occupation” TPD Insurance?
Total and Permanent Disability (TPD) insurance pays you a lump sum if you become permanently disabled due to illness or an accident and cannot ever return to work. When you’re faced with the decision of TPD insurance, it’s essential to understand your options:
‘Own Occupation’ TPD insurance enables you to claim your benefit if you are unable to work in your usual occupation, i.e., the field you have chosen to work.
Own Occupation cover is more expensive than ‘any occupation’ cover, as the chances of claim approval is higher in this type. However, the occupation categories covered under ‘own occupation’ are limited. This mainly works if you have a specialist occupation like a surgeon. Also, this type of TPD insurance is only available outside superannuation from a general insurer.
What is “Any Occupation” TPD Insurance?
‘Any Occupation’ – You can claim on your TPD insurance if you cannot work in any occupation you are suited to by the education, training or experience you have. For example, if you are working in a particular field and you then you become disabled as a result of an accident or illness; while you may not be able to perform the same position, but you can still work a desk job in that area of work, you would not be able to make a TPD claim under ‘any occupation’ cover.
Own vs. Any Occupation – What’s the Difference?
Now, let’s explore the key distinctions between Own Occupation and Any Occupation TPD insurance:
Definition of Disability
Own Occupation: You must prove that you can’t work in your current profession.
Any Occupation: You need to demonstrate that you can’t engage in any job matching your qualifications.
Benefits
Own Occupation: Offers more specific and easier claim approval.
Any Occupation: May be more challenging to claim due to broader terms.
Premiums
Own Occupation: Generally comes with higher premiums.
Any Occupation: Tends to have lower premiums.
Pros and Cons of Own and Any Occupation
To help you make an informed decision, let’s break down the advantages and disadvantages of both options in a tabular format:
|
Own occupation |
Any occupation |
|
|
Pros |
Higher likelihood of successful claim. |
Lower premiums. |
|
Cons |
Higher premiums. May not cover all occupations. |
Broader terms can make claims more challenging. |
Own vs. Any Occupation – Which One Do You Need?
The most recommended way to get yourself covered is through your own occupation. It offers the highest opportunity to make a successful claim, and you can make a claim even if you work in a different sector.
You can also elect to have a combined own & any occupation policy, whereby you are insured for both situations. This allows you to save some money on the premium but also ensures you have some cover for both situations.
Your choice between Own and Any Occupation TPD insurance should consider the following factors:
Job
If you’ve invested significant time and effort into your current profession, Own Occupation might be the better choice.
Any Occupation might be suitable if your injury would prevent you from working in most other jobs within your field.
Cost
Own Occupation usually comes with higher premiums, providing more security.
Any Occupation offers cost savings, but may require a severe injury to make a claim.
Exclusions
Certain high-risk professions may not have the option for Own Occupation coverage.
Any occupation cover is more affordable but has a higher threshold to claim.
Now that you know about both types of total and permanent disability insurance coverage, you will be able to make the best and most informed decision. However, another crucial part of buying total and permanent disability insurance is finding the right insurance provider.
Making informed decisions with Aspect Underwriting
Aspect Underwriting is a boutique insurance agency in Australia that can provide you with total and permanent disability insurance online. They provide the most effortless process, from getting a quote to purchasing cover; no meetings or calls are required.
You are just a few clicks away from being covered. Aspect UW can also provide you with a complete accident and health cover package, including income protection insurance, accidental death and trauma insurance, and total and permanent disability insurance.
Their intelligent online cover builder allows you to combine any of the above policies and build a package suited to your needs. Do not delay any further; visit the Aspect Underwriting website today and get a TPD insurance quote and cover yourself now!
In the realm of Total and Permanent Disability (TPD) insurance, the choice between Own Occupation and Any Occupation is a significant one. It’s not just about safeguarding your financial future; it’s about ensuring peace of mind during uncertain times.
As you’ve discovered, Own Occupation insurance offers the advantage of job-specific coverage, making it an ideal choice for those deeply committed to their professions. It comes with higher premiums, but the prospect of smoother claim approval can’t be overlooked.
On the other hand, Any Occupation insurance offers a more affordable option, but the criteria for claim approval are broader, potentially making it more challenging to navigate. Your choice should reflect your unique situation, considering your occupation, financial security, and risk tolerance. You may even opt for a combined policy to strike a balance between premium costs and coverage.
Ultimately, what matters is that you take the step to protect your future. Aspect Underwriting is here to assist you in making that choice a reality. With a seamless online process and a range of tailored insurance solutions, we’re your partner in securing peace of mind, even in the face of life’s uncertainties.
Make an informed decision, choose the right TPD insurance, and let Aspect Underwriting guide you towards a brighter and more secure financial future.
Mike Wallis
Mike has over 25 years experience, having spent his first seven years working as a Broker at Jardine Lloyd Thomson in Melbourne and in 2002 was transferred to JLT’s Accident and Health Department in London. For four years (2002 – 2005) Mike was a specialist A&H Lloyd’s Broker and during this time developed excellent relationships with the Lloyd’s A&H underwriting fraternity. In 2006 he returned to Australia in a senior broking position with overall responsibility for Placement Strategy, including the implementation of underwriting facilities and the various authorities granted by Lloyd’s. Mike was the underwriter at two specialist Underwriting Agencies prior to founding Aspect Underwriting in 2016.
