Any Occupation

Any Occupation TPD pays a lump sum if you become totally and permanently disabled and it is unlikely you will ever be able to return to any occupation for which you are reasonably suited for by training, education or experience.

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  • Own vs Any Occupation
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no-1What does ‘Any Occupation’ mean?

Any Occupation means that it is unlikely you will ever be able to work in ‘Any Occupation’ for which you may be reasonably suited for by training, education or experience.

no-2Advantages of an Any Occupation policy

Affordability

Any Occupation is generally more affordable than an Own Occupation policy.

Superannuation

This policy type can be taken out through your superannuation, unlike Own Occupation.

no-3General Policy Details

Minimum Entry Ages:16-64
Policy Conversion Age:65-70 (Policy will generally convert to Modified TPD)
Policy Expiry Age:65-100 (Depending on your insurer)
Max Sum Insured:$5,000,000

no-4Definition of Total and Permanent Disablement

In general, in order to claim under your policy:

  • The insured must be absent from and unable to work in any occupation for a period of at least 3 – 6 months due to an accident or sickness and;
  • The insured is disabled and to such an extent it is unlikely they will ever be able to engage in any business, occupation or profession for which they are suited for by way of training, education or experience.

Please be aware this is a general definition only and will differ between insurance companies. Please consult the PDS for a more specific definition.

no-5What can the benefit be used for?

Essentially the benefit can be used in any way you see fit, however some general ways it can be used include:

Debt repayments

Medical Costs

Home Modifications

Providing an income

no-6Superannuation

You can generally take out Any Occupation TPD within your super fund. However there are a few things you should consider:

  1. Your premiums may be tax deductible to the fund if they meet the definition of a ‘disability superannuation benefit’
  2. Any lump sum benefit paid out is paid into the fund. In order for you to access this benefit before you retire; you will need to meet a condition of release. See our Insurance in Super article for more information.

Generally, Any Occupation TPD Insurance will meet the conditions of release and access to the lump sum benefits prior to retirement age will be available.

Please note that any lump sum payments received may not be tax free and may be taxed under the superannuation benefit payments rules.

no-7What is the partial payments benefit?

What is the partial payments benefit?

You may be eligible to receive a partial benefit payment of up to 25% of your total benefit. This may be available if you suffer the permanent loss or use of:

  • One Arm; or
  • One Leg; or
  • Sight of one eye

The balance of the sum insured will generally be paid out at a later date if the insured becomes totally and permanently disabled.

Case Study:

Wendy is an accountant working in one of the top accounting firms in Australia. As she has a family and a mortgage, she decided to take out an Any Occupation TPD policy.

Unfortunately 5 years after taking out the cover, Wendy suffers a stroke, resulting in her becoming paralyzed and requiring 24 hour care.

As she is unable to continue working in ‘Any Occupation’, she is able to make claim on her TPD policy, receiving a lump sum benefit of $1 million.

Published: March 26, 2015

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