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Own occupation vs any occupation: What’s the difference?

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Written by Joshua Malin

Reviewed by Steven Spicer

Updated 11 April 2024

Key takeaways

When it comes to making a Total and Permanent Disability (TPD) claim, there are two potential ways that your insurer could define your occupation at the date of your disability in relation to your claim. These definitions are ‘own occupation’ and ‘any occupation’ and they can play a big role in your TPD claims process. Here are some important things to remember:

While an own occupation definition provides cover for your specific occupation, it will likely come with a higher premium.
If you want TPD cover through your superannuation, you’ll only have access to policies with an any occupation definition.
There are other TPD definitions that can differ between insurers that you’ll want to be aware of.

What’s the difference between own occupation vs any occupation?

When you’re considering taking out Total and Permanent Disability (TPD) insurance, you’ll want to pay attention to each insurer’s TPD definition and how your occupation will be assessed, as this will significantly affect the likelihood of a successful insurance claim.

There are two main ways TPD insurers define disability in their policies, which are based on your ability to work after a claimed event:

Any occupation: You can claim if you’re permanently disabled and have been off work for three consecutive months because of your illness or injury. Your inability to return to work will be assessed against any occupation you’re suited to by education, training or experience. Any occupation TPD insurance is the only definition available through superannuation.
Own occupation: You can claim if you’re permanently disabled and have been off work for three consecutive months due to illness or injury. Your inability to return to work will be assessed against your specific occupation you were working in before your disablement.

Let’s compare these two types of cover against one another.

Any occupation definition		Own occupation definition
Pros	Cons	Pros	Cons
Generally less expensive than an own occupation policy.	You won’t receive a payout if you’re still able to work in another field you’re suited to by education, training or experience.	You could receive a payout even if you were able to return to work in a different occupation, so you may be more likely to receive a disability benefit.	You’ll likely pay a higher premium than you would for any occupation cover.
Available for a wider range of occupations.			Some insurance companies might not cover you for specific occupations that are deemed high-risk.

In addition to the above, there are three other types of policy definitions that you may be covered for under TPD insurance:

Activities of daily living. You’re unable to perform certain activities needed for daily living (e.g. showering, eating).
Home duties. You’re unable to perform your essential duties as a homemaker (e.g. stay-at-home parent).
Loss of independent existence. You’re unable to live independently, you have a cognitive impairment or cannot perform prescribed activities needed for daily living.

If you’re still unsure or want more information, you can call us to talk to an expert and discuss it with them before you take out cover.

Be sure to refer to the applicable Product Disclosure Statement (PDS) for further information on any of the above definitions.

Total and Permanent Disability insurance

What is TPD insurance?

Woman in a wheelchair and man sitting at a table TPD insurance typically provides cover if you’re totally and permanently disabled and therefore unable to work in ‘any’ or your ‘own’ occupation (subject to the specific terms and conditions of your policy).

TPD insurance may give you a lump sum payment and provide the comfort of knowing that you and your family can keep living the life you love if you become disabled.

With TPD insurance, you may become eligible to receive a lump sum benefit payment if you meet your policy’s definition of totally or permanently disabled after an injury or illness.

Do you need TPD insurance?

If you want the peace of mind that you and your family may be covered if you become disabled and can no longer work, it might be time to consider a TPD insurance policy. Remember to refer to the relevant PDS and Target Market Determination (TMD) for the full details of a policy before signing up.

Whether TPD insurance is right for you will depend on your personal circumstance. If TPD doesn’t sound like the right product for you, consider some of the other types of life insurance available on the market.

Meet our life insurance expert, Steven Spicer

Steven Spicer

Executive General Manager – Health, Life & Energy

As the Executive General Manager of Health, Life and Energy, Steven Spicer is a strong believer in the benefits of private cover and knows just how valuable the peace of mind that comes with cover can be. He is passionate about demystifying the health insurance industry and advocates for the benefits of comparison when it comes to saving money on your premiums.