Understanding the Role of a Financial Planner in Adelaide: Determining Whether a Claim Is Paid
Total and Permanent Disability (TPD) insurance is designed to provide a lump sum if illness or injury permanently prevents you from working. However, not all TPD policies are created equal.
The definition of disability — specifically whether your policy is “own occupation” or “any occupation” — can determine whether a claim is paid at all.
Understanding this distinction is critical before choosing or relying on TPD cover.
A financial adviser plays a key role in advising clients on insurance decisions and strategies to protect their assets. A financial adviser can help you make financial decisions and plan for the future.
What is TPD insurance?
TPD insurance pays a lump sum if you become permanently unable to work due to illness or injury. The benefit is commonly used to:
Repay debts such as mortgages or business loans
Cover medical and rehabilitation costs
Replace lost long-term earning capacity
Provide financial security for your family
A TPD payout can help you make your money work harder for you and support your long term goals, such as building wealth and achieving financial stability. Financial planning can include advice about budgeting, investing, superannuation, retirement planning, estate planning, insurance, and taxation.
Whether the benefit is paid depends entirely on how “disability” is defined in your policy.
What is ‘own occupation’ TPD?
Own occupation TPD pays a benefit if you are permanently unable to perform your specific job or profession, even if you could work in another role.
For example, a surgeon who can no longer perform surgery but could work in teaching or consulting may still qualify for an own occupation TPD benefit.
This definition offers broader protection, particularly for professionals and specialised roles.
A TPD payout can be incorporated into your investment portfolio and used for investing to support your long-term financial security.
What is ‘any occupation’ TPD?
Any occupation TPD only pays a benefit if you are permanently unable to work in any occupation for which you are reasonably suited by education, training, or experience.
Using the same example, a surgeon who could still work in a non-clinical medical role may not qualify for a claim under an any occupation definition.
This definition is more restrictive, but premiums are typically lower.
Choosing the right TPD definition is crucial to protect your capital from permanent loss, and an experienced financial planner can lead you through these important decisions to ensure your long-term financial security.
Why does the TPD definition matter so much in financial planning?
Because it directly affects whether a claim is paid.
Many people assume TPD will pay out if they can no longer do their current job. In reality, under an any occupation policy, insurers assess whether you could work in any suitable role — not just your previous one.
The difference between own and any occupation definitions can be the difference between receiving a life-changing benefit or receiving nothing at all.
For those with significant private wealth, the choice of TPD definition can have a major impact on their overall wealth management strategy.
Who is own occupation TPD most suitable for?
Own occupation TPD is often more appropriate for:
Doctors, surgeons, and medical specialists
Dentists and allied health professionals
Tradespeople with specialised physical roles
Business owners whose income relies on specific skills
Professionals with long training pathways
For these groups, losing the ability to perform their core role often has a permanent financial impact, even if alternative work is theoretically possible.
Working with a dedicated team of financial planners who are active members of professional associations and committed to continuous education programs ensures you receive the highest standard of advice and ongoing support throughout your financial journey.
Isn’t losing the ability to perform your usual occupation financially impactful for anyone?
Yes, losing the ability to perform your usual occupation can affect anyone financially. However, the degree and permanence of that impact vary significantly. For individuals whose income depends on specialised skills or long training pathways, the financial consequences are often permanent and difficult to recover — even if alternative work is theoretically possible. For others, skills may be more transferable, allowing income to be replaced more easily over time.
Can own occupation TPD be held inside super?
Generally, no.
Due to superannuation law restrictions, most TPD held inside super is limited to an any occupation definition.
Own occupation TPD is usually held outside super, often alongside super-based cover, to achieve broader protection.
This is why policy structure matters just as much as policy selection.
Quick Answer: Is own occupation TPD always better than any occupation?
Not always. Own occupation offers broader protection but comes at a higher cost.
The right choice depends on your occupation, income reliance, financial commitments, and affordability.
Role of a Financial Adviser in Navigating TPD Claims
Navigating a Total and Permanent Disability (TPD) claim can be a complex and overwhelming experience, especially when your financial situation and future security are at stake. This is where the expertise of a financial adviser becomes invaluable. As professionals in the financial services industry, financial advisers—particularly those holding an Australian Financial Services Licence—are equipped to provide tailored financial planning and personal financial advice that aligns with your unique circumstances and long-term financial goals.
A financial adviser’s role in the TPD claims process extends far beyond simply helping you understand your policy. They offer comprehensive investment advice and develop strategies that address your immediate needs and future objectives, such as wealth management, retirement planning, and wealth creation. By taking a holistic view of your financial affairs, a certified financial planner can help you make informed decisions about your financial products, ensuring you maximise the benefits available from your TPD claim.
With diverse skills across specialty areas like succession planning, estate planning, insurance, and multi asset class portfolios, financial advisers provide a full range of financial planning services. This breadth of expertise is particularly valuable when your financial objectives shift due to a TPD event. Whether you need to restructure your investments, manage debt, or plan for retirement, a financial adviser can assist in creating a tailored financial plan that supports your individual needs and risk profile.
In South Australia and Adelaide, financial advisers are committed to understanding your personal situation and providing advice that is both relevant and practical. They work closely with clients to clarify financial goals, assess risk tolerance, and develop strategies that support long-term wealth creation and financial security. By offering access to a wide range of financial services and products, advisers help clients achieve their objectives with confidence.
As active members of the Financial Advice Association Australia, financial advisers are dedicated to acting in the best interests of their clients. This commitment ensures that you receive unbiased, expert guidance throughout the TPD claims process and beyond. Advisers stay informed about the latest developments in the financial planning industry, so you can trust that your financial decisions are based on current knowledge and best practices.
Working with a financial adviser means having a trusted partner to guide you through every stage of your financial journey. From budgeting and debt management to superannuation and succession planning, advisers provide ongoing support to help you achieve your financial goals and secure your family’s future. Their advice is always tailored to your individual needs, giving you the confidence to make informed decisions about your finances, investments, and long-term plans.
Ultimately, the role of a financial adviser in navigating TPD claims is to provide clarity, support, and expert advice—helping you make the best possible choices for your financial future. With their guidance, you can approach the challenges of a TPD claim with confidence, knowing you have a dedicated professional committed to helping you achieve your financial objectives and protect your wealth for the years ahead.
Frequently Asked Questions about personal financial advice
Why do many people not realise which TPD definition they have?
Because TPD is often held inside super by default, and policy documents are rarely reviewed. Many people only discover the definition at claim time, when it is too late to change.
Can I have both own and any occupation TPD?
Yes. Some people use a layered approach, holding basic any occupation TPD inside super and additional own occupation cover outside super for broader protection.
Does choosing own occupation increase premiums significantly?
Premiums are typically higher, but the cost should be weighed against the risk of not being paid at all under a stricter definition. For many professionals, the trade-off is justified.
How does retraining affect an any occupation TPD claim?
If an insurer believes you could retrain for another role suited to your background, an any occupation claim may be declined. This is a common and often unexpected outcome.
Should TPD definitions be reviewed as my career changes?
Yes. Career progression, income growth, business ownership, or role specialisation can all affect whether your existing TPD definition remains appropriate.
What is the biggest mistake people make with TPD insurance?
Assuming all TPD policies provide the same protection. The definition matters far more than the label “TPD” itself.
