By Tony Smilevski · Updated 11 October 2026
Key points
- Acenda's PDS says the insured person must meet the complete definition of TPD that applies to them for a benefit to be payable.[1]
- Under the main work test in TAL's Any Occupation TPD definition, after all reasonable treatment and rehabilitation the person must have not worked in any occupation for three consecutive months and be unlikely ever to work in any occupation they are reasonably suited to that would pay more than 25% of their Earnings in their last 12 months of work.[2]
- ClearView's Own Occupation TPD is only available outside super, and TAL's Own Occupation TPD is not available when structured through super.[3][4]
- AIA's PDS says Life Cover is reduced by any claim paid on TPD, but not where TPD is held as a Stand Alone benefit.[5]
- TAL's TPD plan ends on the policy anniversary before the 65th birthday,[6] and ClearView's TPD Cover ends on the policy anniversary after age 70, with the definition changing to Non-Occupational TPD from the policy anniversary after age 65.[7][3]
TPD stands for total and permanent disability. TPD insurance pays a lump sum if sickness or injury leaves you disabled in the way your policy defines.
What does TPD stand for, and what does TPD insurance cover?
TPD stands for total and permanent disability. Acenda's product disclosure statement (PDS) says it "pays you a benefit if you become Totally and Permanently Disabled while insured", and that "You must meet the complete definition of TPD that applies to you for a benefit to be payable."[1] ClearView's PDS says it won't pay if the disability is caused directly or indirectly by an intentional self-inflicted act, a criminal offence, or anything specifically excluded on your policy certificate.[8]
How do insurers define total and permanent disability?
The PDSs quoted here set their own definitions. Two tests are "own occupation" and "any occupation":
- ClearView: Own Occupation TPD needs three consecutive months absent from, and unable to work in, your own occupation, then being unlikely ever to engage in it again. After more than 12 months unemployed or on parental or sabbatical leave, Any Occupation applies instead.[3] Any Occupation TPD has the same three months, but asks about any occupation you are reasonably suited to, including through reasonable retraining or reskilling, that would earn at least 25% of your average monthly earnings in the most recent 12 months of gainful employment. For any definition, ClearView also requires a "stabilised condition": regular medical care, all reasonable treatment and rehabilitation undertaken, and no significant improvement expected.[8]
- AIA: its PDS offers TPD and TPD CORE. Under TPD, Own Occupation is met if, solely because of injury or sickness, you have ceased work in your own occupation and remain unable to work in any capacity for at least three consecutive months, have had the reasonable treatment and rehabilitation a specialist called for, and medical evidence shows your condition is stable and permanent, so you are unlikely ever to engage in it.[9] Any Occupation asks about any work you are reasonably suited to. Outside super it is also met if your earning capacity is permanently restricted so that 12 months' income would be under 25% of your income in the previous 12 months.[10] For TPD CORE, claims arising from or related to "Specified Conditions", including mental illness, are assessed on an Any Occupation basis only, even under Own Occupation cover. They also face additional criteria, including a 24-month Minimum Treatment Period and, for mental health conditions, a minimum severity rating of 31% on the Psychiatric Impairment Rating Scale.[11]
- Acenda: Own Occupation needs a continuous 3 month period completely unable to work at your own occupation, and being unlikely ever again to work at it. It is the occupation you had when you applied or, if you have changed, the last one you held for a continuous period of at least six months.[12] Any Occupation needs the same 3 months and being unlikely ever again to work at any occupation you are reasonably suited to. Outside super, that must also give Earnings of more than 25% of your rate of Earnings in the 12 months before the 3 month period.[13]
- TAL: Own Occupation needs three consecutive months not working in your own occupation, after all reasonable treatment and rehabilitation, and being unlikely ever to work in it again.[14] Any Occupation needs three months not working in any occupation, and being unlikely ever to work in any occupation you are reasonably suited to that would pay more than 25% of your Earnings in your last 12 months of work.[2]
Each of these four also has other routes, such as a set level of permanent impairment or loss of limbs or sight.[3][9][12][14]
What other TPD definitions do policies use?
- Activities of daily living. TAL's ADL definition includes being totally and permanently unable to perform at least two of five activities without another person's physical help.[14][15]
- Home duties. Acenda has a separate test, with set conditions, for people doing full-time domestic duties or child rearing, based on being unable to do at least 4 Normal Physical Domestic Duties without help.[13][12]
How the insurers compare
- Insurer and topic: ClearView: Own Occupation — What its PDS says: 3 consecutive months unable to work in own occupation and unlikely ever to return; after over 12 months unemployed or on parental or sabbatical leave, Any Occupation applies.[3]
- Insurer and topic: AIA: Own Occupation — What its PDS says: Ceased own occupation, unable to work in any capacity for 3 consecutive months, after treatment; stable and permanent (full test: see How do insurers define total and permanent disability?).[9]
- Insurer and topic: Acenda: Own Occupation — What its PDS says: 3 continuous months completely unable to work in own occupation, unlikely ever to return (occupation at application, or last held 6 months or more).[12]
- Insurer and topic: TAL: Own Occupation — What its PDS says: 3 consecutive months not working in own occupation, after all reasonable treatment and rehabilitation, and unlikely ever to work in it again.[14]
- Insurer and topic: ClearView: Any Occupation — What its PDS says: 3 months unable to work, then unlikely ever to work in a suited occupation earning at least 25% of average earnings; stabilised condition also needed.[8]
- Insurer and topic: AIA: Any Occupation — What its PDS says: As Own Occupation, but unlikely ever to do any suited work; outside super also met if earning capacity is permanently under 25%.[10]
- Insurer and topic: Acenda: Any Occupation — What its PDS says: 3 continuous months completely unable to work in any suited occupation, unlikely to return; outside super it must also give Earnings over 25% of prior Earnings.[13]
- Insurer and topic: TAL: Any Occupation — What its PDS says: 3 consecutive months not working, after all reasonable treatment, unlikely ever to work in a suited occupation paying over 25% of last 12 months' Earnings.[2]
- Insurer and topic: AIA: TPD CORE Specified Conditions — What its PDS says: Specified Conditions, including mental illness, are assessed as Any Occupation only, even with Own Occupation cover, with extra criteria (see What other TPD definitions do policies use?).[11]
Each row shows the insurer's main work test. Each definition also has other ways to qualify (for example loss of limbs or sight, or a set level of permanent impairment), set out on the cited page. Which definitions apply inside super differs by insurer (see Can I hold TPD insurance inside super?).
Can I hold TPD insurance inside super?
Yes, but the definition can change. See our life insurance in super guide.
- ClearView: Own Occupation TPD is only available outside super. Inside super you must also be unlikely ever to engage in any gainful employment you are reasonably suited to. Its TPD Super Solutions flexi-links Any Occupation cover inside super to Own Occupation cover outside.[3]
- TAL: Own Occupation is not available when structured through super.[4] Its Superlink TPD pairs Any Occupation through super with Own Occupation outside. A claim is assessed under the super policy first, then the outside policy if the first isn't satisfied.[16]
- Acenda: Own Occupation is listed as outside super only. Its TPD Optimiser packages an inside-super Any Occupation policy with an outside-super Own Occupation policy.[1] Inside super you must also be "Permanently Incapacitated".[12]
- AIA: in a Superannuation Plan, TPD CORE Own Occupation is only available if you also select a Linked Benefit.[17] Inside super, AIA also requires a condition of release under superannuation law to be met.[10]
Is TPD stand-alone or linked to life cover?
- ClearView: stand-alone cover doesn't reduce other cover when paid. With linked cover, all linked cover is reduced by the benefit paid.[18] A Life Cover Buy Back Option is listed as an optional extra.[7]
- AIA: Life Cover is reduced by any claim paid on TPD, but not where TPD is held as a Stand Alone benefit.[5]
- Acenda: with a TPD Extension, a benefit reduces Life Cover by the amount paid. Its 12-month Life Cover Buy Back Option lets you restore it, without further evidence of health, 12 months after the full TPD benefit is paid, but not if a terminal illness benefit was paid earlier. Its 14-day Life Cover Buy Back Option restores it automatically if you live for 14 days after the full TPD benefit is paid.[19][20] Stand-alone TPD is available outside super only.[21]
- TAL: a TPD benefit reduces the benefit amount of any attached or linked plans. Where the Death Buy-Back Option applies and TAL pays 100% of the TPD benefit amount, TPD ends and, within set time limits, you can buy back life insurance up to the amount paid.[4] The Double TPD Option, where shown on the policy schedule and TPD is attached or linked to life insurance, means life insurance isn't reduced when 100% of the TPD amount is paid.[16]
Can TPD be paid in part or in instalments?
- AIA pays 25% of the sum insured, up to $750,000, for permanent loss of use of one arm or one leg, or permanent loss of sight in one eye. It is paid once, reduces the TPD sum insured,[22] and isn't available in AIA's Superannuation Plan.[17]
- TAL's Advanced Payment Benefit pays 25% of the benefit amount, up to $500,000, for permanent loss of use of a single limb or loss of sight in one eye. It is payable once and not available when structured through super.[4]
- TAL's TPD Support Option, if on your policy with an Any or Own Occupation definition, applies when the disability is contributed to or caused by a "TPD Support Condition", including mental conditions and fatigue and functional disorders. Those claims are assessed under the option, not the standard TPD benefit.[4][16] It pays up to five payments, each of 20% of the TPD benefit amount, at 12 month intervals over a minimum of 4 years, if the test is met each time. In some cases, such as age 62 or older at the date of disablement, TAL pays the remainder as a lump sum. If you don't meet the test at a later date, your remaining TPD amount continues as cover, subject to the policy terms. The option isn't available if TAL applies a mental health exclusion.[16]
At what age does TPD cover end or change?
- ClearView: from the policy anniversary after you turn age 65, the definition for all TPD cover becomes Non-Occupational TPD, and TPD cover above $3,000,000 across all ClearView policies is reduced to $3,000,000.[3] TPD Cover ends on the policy anniversary after you turn age 70.[7]
- AIA (TPD CORE): expiry is the policy anniversary before your 70th or 65th birthday, depending on occupation category. The benefit then converts to Loss of Independence, which continues until the Life Cover it is a rider to expires. Conversion isn't available within a Superannuation Plan or Maximiser.[17][22]
- Acenda: the Any Occupation, Own Occupation, Severity and Home Duties definitions apply until the Review Date after your 65th birthday. Loss of Independence applies from then.[13] Cover expires on the Review Date after age 100 outside super (stand-alone or Extension to Life Cover), after age 74 inside super (100 if converted to non-super), and after age 65 as an Extension to Critical Illness.[1]
- TAL: the TPD plan ends on the policy anniversary before your 65th birthday.[6]
Is TPD insurance tax deductible? Is a payout taxable?
Tax treatment depends on your circumstances and on how the policy is held. For payments from a super fund, the ATO says you may receive a disability super benefit if you have physical or mental ill health and "2 legally qualified medical practitioners have certified that it is unlikely you can ever work in a job for which you are reasonably qualified". It says it taxes lump sums and income stream payments differently.[23] A registered tax agent or accountant can say how it applies to you. Our tax deductibility guide covers premiums and payouts.
How is TPD different from trauma, income protection and life insurance?
TAL's PDS describes TPD as paying if you become totally and permanently disabled, income protection as paying for lost income, trauma as paying on a specified serious event, and life insurance as paying on death or terminal illness.[6][24][25][26] See our income protection, trauma and life insurance guides.
What are the eligibility requirements for TPD insurance?
ClearView requires you to be gainfully employed and working at least 20 hours per week for its Own or Any Occupation TPD, with entry ages from 18 to 60 (variable age-stepped premium) or 55 (variable premium).[27] AIA sets at least 20 hours per week for Own Occupation and at least 15 for Any Occupation, depending on occupation category. People below those hours can apply for its Universal TPD, which covers a defined list of events.[28]
Do I need TPD insurance?
We can't tell you whether you need it. That depends on your own circumstances, and this page doesn't take them into account.
PPS Mutual's target market determination (TMD) for its Professionals Choice TPD product describes people with financial commitments, such as mortgage and other debt costs, income replacement, and medical and rehabilitation costs, that wouldn't be met if total and permanent disablement stopped them working, doing domestic duties or living independently.[29] Premiums are ongoing. A benefit is only paid if the definition is met.
How do I claim on TPD insurance?
In AIA's and ClearView's own and any occupation definitions, a claim needs three consecutive months off work and medical evidence about the condition.[9][8] Our claims guide explains the process.
Questions to ask before you choose
- Is the definition own occupation, any occupation or another test, and how long must I be off work?
- Is the cover inside or outside super, and does the definition change?
- Is it stand-alone or linked? What happens to my life cover if TPD is paid?
- What is excluded or treated differently, such as mental health conditions?
- How would my health history be underwritten? See our pre-existing conditions guide.
Read the insurer's PDS and TMD before deciding. You can find them in our PDS and TMD library. We deal with 11 Australian life insurers. For general information about anything in this guide, book a time with Tony or call 0433 22 77 11.
Sources
- [1] Acenda Insurance and Acenda Insurance (Super) PDS (Apr 2026), PDF page 30.
- [2] TAL Accelerated Protection Combined PDS and Policy Document (Dec 2025), PDF pages 47–48.
- [3] ClearView ClearChoice Combined PDS (Aug 2026), PDF page 45.
- [4] TAL Accelerated Protection Combined PDS and Policy Document (Dec 2025), PDF page 19.
- [5] AIA Priority Protection and Priority Protection for Platform Investors PDS (Aug 2026), PDF page 18.
- [6] TAL Accelerated Protection Combined PDS and Policy Document (Dec 2025), PDF page 8.
- [7] ClearView ClearChoice Combined PDS (Aug 2026), PDF page 46.
- [8] ClearView ClearChoice Combined PDS (Aug 2026), PDF page 44.
- [9] AIA Priority Protection and Priority Protection for Platform Investors PDS (Aug 2026), PDF page 209.
- [10] AIA Priority Protection and Priority Protection for Platform Investors PDS (Aug 2026), PDF page 204.
- [11] AIA Priority Protection and Priority Protection for Platform Investors PDS (Aug 2026), PDF page 34.
- [12] Acenda Insurance and Acenda Insurance (Super) PDS (Apr 2026), PDF page 115.
- [13] Acenda Insurance and Acenda Insurance (Super) PDS (Apr 2026), PDF page 114.
- [14] TAL Accelerated Protection Combined PDS and Policy Document (Dec 2025), PDF page 48.
- [15] TAL Accelerated Protection Combined PDS and Policy Document (Dec 2025), PDF page 45.
- [16] TAL Accelerated Protection Combined PDS and Policy Document (Dec 2025), PDF page 20.
- [17] AIA Priority Protection and Priority Protection for Platform Investors PDS (Aug 2026), PDF page 35.
- [18] ClearView ClearChoice Combined PDS (Aug 2026), PDF page 24.
- [19] Acenda Insurance and Acenda Insurance (Super) PDS (Apr 2026), PDF page 65.
- [20] Acenda Insurance and Acenda Insurance (Super) PDS (Apr 2026), PDF page 66.
- [21] Acenda Insurance and Acenda Insurance (Super) PDS (Apr 2026), PDF page 64.
- [22] AIA Priority Protection and Priority Protection for Platform Investors PDS (Aug 2026), PDF page 36.
- [23] Australian Taxation Office, Invalidity or disability payments from employers or super funds (retrieved 30 September 2026).
- [24] TAL Accelerated Protection Combined PDS and Policy Document (Dec 2025), PDF page 11.
- [25] TAL Accelerated Protection Combined PDS and Policy Document (Dec 2025), PDF page 22.
- [26] TAL Accelerated Protection Combined PDS and Policy Document (Dec 2025), PDF page 7.
- [27] ClearView ClearChoice Combined PDS (Aug 2026), PDF page 12.
- [28] AIA Priority Protection and Priority Protection for Platform Investors PDS (Aug 2026), PDF page 28.
- [29] PPS TMD TPD-Insurance (Sep 2026), PDF page 3.
Just so you know, Tony Insurance operates under Sustainable Life Solutions (AFSL 536966) and can only give general advice about life insurance. That means we'll tell you what you need to know for you to make a good decision, but we can't give you specific advice or recommendations. It also means that everything on our website is only general information and isn't specific to you.
Toni Smilevski, Authorised Representative 343156 of Sustainable Life Solutions Pty Ltd (AFSL 536966)