Why is TPD Insurance important?

TPD insurance is vital to have for both you and your loved ones. This is because it protects you and your family in the event a serious or permanent disablement prevents you from working again. This TPD payout amount can cover your expenses and any debt that occurred during your injury and in your recovery period. 

TPD insurance ensures that your quality of life is maintained despite your total and permanent disability. It does this by: 

  • Helping to pay for recovery and rehabilitation costs,
  • Enabling a family member to reduce their work hours to care for you,
  • The ability to pay for a professional careworker if needed,
  • Providing funds to pay for any debts,
  • Create an ongoing stream of income for your future.

When selecting your TPD insurance, you will be given the choice of any-occupation cover or own-occupation cover. These are the two distinct categories that you will have to choose from; any-occupation tends to be a cheaper cover because it is much harder to receive a claim from. 

For the own occupation cover, if you choose to make a claim then you will be paid out if you can no longer able to work in your chosen occupation. 

For any occupation cover, you will only be covered if you cannot return to the occupation that you have the education, training, and experience for. 

If you would like more information on Total and Permanent Disability Insurance, please click here. 

What is Any Occupation Cover?

When selecting your Total and Permanent Disability insurance cover, you will be given the option of Any or Own insurance. Any Occupation TPD insurance cover is normally the cheaper option, simply because it is far harder to make a successful claim for. 

For the any occupation cover, you will only be covered if you cannot return to the occupation that you have the education, training, and experience for. For example, if you were a dental surgeon and can return to work still within the dental field, then you may not be covered. To claim this type of cover is a lot harder because you have to be able to prove that you cannot return to work in any related field. 

Why is an Own Occupation Policy Better? 

When selecting your TPD insurance cover type, you will be given the choice between any and own insurance cover. While any occupation will be the cheaper option, it is normally viewed that own occupation is the better option for TPD insurance. 

This is because Own Occupation is more flexible, and needs less proof to make a successful claim. You will need to prove that you can’t work in your previous profession. So this means that if you have work in a certain industry or role, and you cannot return to that specific occupation, you can make a claim. Therefore, you can still make a claim even if you go on to work in another field of work. If you want more information on this type of policy, we advise that you look here. 

So Which One Is Better For You?

Obviously, the difference between any and own TPD insurance depends on the occupation and financial position that you are in. 

Job

  • When selecting your TPD insurance, it is important to consider what kind of role you are currently in. 
  • In most cases, it makes far more sense to choose an own-occupation policy. This is because in the unfortunate case that you can no longer work due to your total or permanent disability, you are protected.

Cost 

  • Any-occupation is the cheaper option when it comes to TPD insurance cover. While this is limiting in how you make your claim, it would be beneficial if your injury means that you can no longer work in any job within your profession. 
  • For example, for any desk-type jobs, your injury would have to be severe to limit you working in other jobs in your industry, too. This means that any occupation cover would be beneficial here. 

Exclusions

  • Certain professions might limit your TPD insurance cover choice. This could be because they are high-risk professions. Many insurers do not cover carpenters, electricians, and scaffolders in own-occupation cover, because of the likelihood of a payout, for example. 

When selecting your TPD insurance cover, it is important to understand what types of cover are available to you. The difference between any and own insurance cover can determine whether you make a successful claim in the future. To determine what type of cover you should take out, it is important to consider your eligibility, job, and financial situation. 

If you think you have a TPD Insurance claim, What’s My Claim Worth is here to help you. Please use our claims calculator today to start your journey to your TPD claim.