How does TPD insurance work if I'm self-employed?

Self-employed clients qualify for the same retail Total and Permanent Disability cover as employees across the panel. Three things change in practice: how you evidence income, which TPD definition fits the business, and how a claim documents an occupation that is also a business asset.

The panel is AIA, Zurich, TAL, OnePath, ClearView, NEOS, Encompass, Acenda and Futura. Business Expenses cover is an adjacent product that handles ongoing fixed business costs and is often considered alongside TPD.

Income evidence at application

Employees typically provide a payslip and a PAYG summary. Self-employed applicants are asked for a longer paper trail:

• Two to three years of personal tax returns and ATO notices of assessment.
• Business or company tax returns and profit and loss statements.
• BAS statements for the most recent four quarters.
• An accountant letter confirming earnings and the structure of the business.
• For company or trust structures, documentation of which earnings are attributable to the insured's personal exertion.

The evidence drives the TPD sum insured (and any bundled IP sum insured) under reasonable-needs underwriting. Sums insured well above demonstrated earnings are not approved.

Which TPD definition matters most

Own Occupation TPD is usually the more relevant definition. The 'occupation' is the specific trade or profession the insured personally performs, not the running of a business in the abstract.

For a plumber, a surgeon, or a graphic designer, Own Occupation tests whether the insured can perform the duties of that trade. Any Occupation instead asks whether the insured could perform any occupation for which they are reasonably suited by education, training, or experience. That can include sedentary or management roles unrelated to the original business.

Own Occupation is only available outside super

Under the panel's standard structure, the Any-Occupation TPD component sits inside super (trustee owns it, premiums come from super, claim releases via SIS r.6.01(2)). A smaller Own-Occupation 'uplift' rider sits outside super, with premiums paid personally and the claim paid tax-free outside super. The Own-Occ component is typically the smaller portion of the total premium.

See can I have TPD insurance both inside and outside superannuation for the structural detail.

Where panel insurers set out Own-Occ outside-super only

• Acenda Insurance (PDS 27 September 2025, page 19): 'Own Occupation (available outside super only). You'll be charged a higher premium if you choose Own Occupation. Not all occupations are eligible for this definition.' Acenda also offers a TPD Optimiser to package Any and Own Occupation together.
• ClearView ClearChoice (PDS May 2024 with update effective 5 June 2025, pages 40 to 41): 'Own Occupation TPD is only available outside super.'
• TAL Accelerated Protection (PDS 12 December 2024, Section 9, page 88), AIA Priority Protection (PDS 9 November 2025, Section 12.1, page 221), and the rest of the panel mirror this structure.

Occupation categories drive premium and definition eligibility

Panel insurers classify occupations into rating categories that drive both premium and eligibility for Own Occupation. The categories vary by insurer:

• TAL Accelerated Protection (PDS 12 December 2024, page 88): eight categories (AAA, AA+, AA, A, BBB, BB, B, SRA).
• AIA Priority Protection (PDS 9 November 2025, page 221): nine categories including M (Medical professionals with Needlestick coverage).
• The other panel insurers use four to eight category systems with similar gradients.

White-collar professional categories typically have the broadest access to Own Occupation TPD. Heavy-manual and special-risk categories typically have more limited definition options and may be restricted to Any Occupation or ADL definitions.

Documenting a self-employed claim

The claim pack adds a layer to the standard documentation:

• Description of duties the insured personally performed in the business. A self-employed plumber spends time on physical plumbing, time on quoting and admin, and time on supervising contractors. The duties statement breaks this down.
• Evidence that business operations changed following the disability (reduced trading hours, cessation, transfer to a co-owner or buyer, redundancy of employees).
• Updated financials showing the business performance before and after the disabling event.
• Tax returns and BAS for the relevant claim periods.

For the standard documentation expectations see what medical evidence is required for a TPD claim.

The 'can you still manage the business' question

For an Any Occupation claim involving a self-employed client with a management or supervisory role, the insurer may consider whether that role can continue even if the trade cannot. Where the business model allows a meaningful management role to continue, this can defeat an Any Occupation TPD claim.

Under Own Occupation TPD the question is narrower: can the insured perform the specific occupation (e.g. plumbing), regardless of whether they could oversee a business. See can I work part-time and still claim TPD insurance for the broader interaction between residual work capacity and the total test.

Business Expenses cover for ongoing fixed costs

Business Expenses cover pays a monthly benefit (typically up to 12 months) towards fixed business overheads during a period of disablement. Typical insured costs include rent, utilities, accounting fees, professional subscriptions, and leased equipment.

ClearView ClearChoice (PDS May 2024 with update effective 5 June 2025, around page 76, Business Expenses Cover) sets out the standard scope. AIA Priority Protection, TAL Accelerated Protection, Zurich Wealth Protection, OnePath OneCare and others offer comparable cover.

Business Expenses is a short-tail cover designed to keep the business viable during recovery. It does not substitute for TPD or Income Protection.

For the broader retail-vs-super context see retail vs super life insurance. To start a quote across the panel see the TPD quote page.