Introduction
When choosing TPD insurance, one of the most important decisions you'll make is whether your cover is based on an any occupation or own occupation definition.
This choice directly affects how disability is assessed, how hard it is to claim, where your policy can be held, and how much the cover costs. Understanding the difference upfront can help avoid surprises at claim time.
What is the difference?
At a high level, the difference comes down to how your ability to work is measured after illness or injury.
Own Occupation TPD
- Pays a benefit if you can no longer work in your specific job due to illness or injury
- You may still be able to work in another role, but the policy will still pay
- Often preferred by professionals with specialist skills
- More flexible but usually available only outside superannuation and tends to cost more
Any Occupation TPD
- Assessed across all suitable jobs Pays a benefit only if you cannot work in any job you're reasonably suited to by education, training, or experience
- Commonly used for TPD held through superannuation where superannuation law limits when benefits can be released from a super fund
- Usually cheaper, but harder to qualify for at claim time
Why the definition matters in real claims
TPD claims are definition-based, not diagnosis-based. It's not enough to be seriously ill or injured - insurers assess whether your condition meets the wording of your policy.
This is especially important under any occupation definitions, where a claim may be declined if:
- You could retrain for another role
- You could work part-time or lower paid
- You retain capacity to earn income
By contrast, own occupation focuses only on whether you can ever return to your occupation, regardless of whether alternative work is theoretically possible.
Working capacity “grey zones”
Many TPD claims sit in a grey area between total incapacity and partial ability to work.
- Illness prevents full-time work but allows limited duties
- Loss of specialist skills but retained general capacity
- Ability to earn less than a percentage of previous income
Who can access own occupation TPD?
✅ Commonly eligible
👩⚕️ Doctors
🧑💻 Engineers
📊 Accountants
🏢 Senior managers
⚠️ Often restricted
🔧 Heavy manual trades
🦺 Semi‑skilled labour roles
🏗️ Extra heavy occupations
👉 Check if there are resrictions on your occupation with our Quote Tool
Inside vs outside super
Where your TPD insurance is held matters just as much as the definition.
TPD held inside super must satisfy both the insurers policy definition and meet Superannuation law's definition of permanent incapacity. So they are usually restricted to an any occupation definition.
| Feature | Any Occupation | Own Occupation |
|---|---|---|
| Claim test | Any suitable job | Your specific job |
| Claim difficulty | Higher | Lower |
| Cost | Lower | Higher |
| Inside super | Yes | No |
| Outside super | Yes | Yes |
Super & SuperLink structures
TPD insurance can be structured using a SuperLink arrangement. This structure is commonly used to balance cost efficiency with improved claim certainty.
Superlinking is a structuring approach where the cover is split across two ownership structures - one held inside super, and the other outside super
The policy is designed to work together at claim time, even though premiums are paid from different sources.
The goal is to balance:
- Cash-flow efficiency (by paying some premiums from super), and
- Claim certainty and flexibility (by allowing accedss to own occupations definitions).
⚙️ How Superlinking Typically Works
The inside-super portion:
- Is an any occupation definition
- Is owned by a super fund trustee
- Helps fund premiums via super contributions or assets in the fund
- Is subject to superannuation law release conditions
The outside-super portion:
- Is usually an own occupation definition
- Is owned by you personally
- Can have an own occupation definition
At claim time, your insurer will assess if super release conditions are met and you can be paid from super and, if not, they will assess against the policy outside super.
This design helps reduce the risk of payment disruption if super law conditions are not satisfied.
Expiry Ages & Definition Changes After 65
TPD insurance does not operate the same way for life.
Before Age 65
Own or Any Occupation definitions apply
Claims are assessed on work-based criteria
After Age 65
Most policies switch to Loss of Independence
Claims are assessed on non-work criteria, such as:
- Inability to perform daily living activities
- Permanent functional dependence
💡 Key point: Own and any occupation definitions generally only apply up to age 65.
Common Misconceptions About TPD
❓ “Any occupation means I must be completely helpless”
🚫 Not true - it's based on future work capacity, not total incapacity.
❓ “Own occupation is always better”
⚖️ Not necessarily - it costs more and isn't available to everyone.
❓ “Super TPD and retail TPD work the same way”
🔍 They don't - superannuation law adds restrictions to claims and payments.
❓ “TPD definitions never change”
📅 They do - especially after age 65, definitions often shift significantly.
Key Takeaway
The choice between any occupation and own occupation TPD is not just a wording preference - it affects:
- Claim eligibility
- Cost
- Superannuation payment options
- Long-term certainty
Understanding how definitions, super rules, occupation eligibility, and age-based changes interact is essential to choosing TPD cover that works when it matters most.