Own occupation vs any occupation TPD.

Total and permanent disability (TPD) cover pays a lump sum if illness or injury stops you working for good. Whether a claim is paid often comes down to one definition.

Own occupation

An own-occupation definition pays if you’re unlikely ever to return to your own job. A surgeon who loses the use of a hand could claim, even if they could still teach or consult.

Any occupation

An any-occupation definition pays only if you’re unlikely ever to work in any job you’re reasonably suited to by education, training or experience. That is a harder test to meet, which is why these policies usually cost less.

unable ever to work in any occupation for which they are reasonably suited by education, training or experience

Typical any-occupation wording

Why it matters

Two policies with the same sum insured can behave very differently at claim time. Comparing premiums without comparing this definition can make the cheaper policy look like the better deal.

Inside superannuation

In Australia, TPD cover held inside super must use an any-occupation style definition. Some insurers let you hold an own-occupation top-up outside super alongside it.

How to check yours

1. Find the TPD definition in your policy wording, usually in the definitions section.
2. Look for the words own, usual, any, or reasonably suited.
3. Check whether the definition changes at a set age, often 65.
4. Upload your policy to Bob to see the definition with its page reference.