How much TPD insurance coverage do I need?

A TPD sum insured needs to cover four buckets at once: debt to clear, the upfront cost of adapting to permanent disability, the ongoing cost of care, and the income to fund a longer life with that impairment. There is no single figure that fits every situation.

The figures below are illustrative, not personal advice. Use them as a starting point for your own analysis.

A practical sizing framework

Add the four buckets, then subtract liquid assets and other in-force cover.

1. Debt clearance

Mortgage outstanding plus personal loans plus credit cards plus car finance plus HECS where relevant. The mortgage is the single largest line for most households.

2. Capital-expenditure shock

Home modifications, vehicle modifications, mobility equipment, and rehabilitation costs not funded by Medicare, NDIS or private health. Worked examples in the Zurich Cost of Care series put major home modifications at $50,000 to $150,000 and a wheelchair-accessible vehicle conversion at $30,000 to $80,000.

3. Ongoing care

Care assistance, allied health, modifications upkeep, medication, and equipment replacement on a multi-year cycle. The recurring component is the line that compounds and is most often under-estimated.

4. Income replacement to retirement

The earnings the household will not now earn. Take net income x years to planned retirement, then discount for investment returns on the lump sum.

A rough rule of thumb is a 5x to 10x annual earnings multiple, depending on age and dependants.

Two illustrative numbers

These are examples, not recommendations.

Mid-career household

• Two earners, mortgage of $400,000, one dependent child, primary earner on $110,000 net.
• Debt clearance: $400k.
• Upfront capex: $150k.
• Income to age 65: $1.2m.
• Ongoing care reserve: $250k.
• Total sum insured: approximately $2m.

Late-career household

• Mortgage paid down to $80,000, no dependants, primary earner on $90,000 net, 10 years to planned retirement.
• Debt clearance: $80k.
• Upfront capex: $100k.
• Income to age 65: $700k.
• Ongoing care reserve: $200k.
• Total sum insured: approximately $1.08m.

Sum-insured ceilings across the panel

The maximum TPD sum insured varies by insurer and (within an insurer) by occupation category. Source: PDSs and adviser guides.

| Insurer | Maximum TPD sum insured | Source | |---|---|---| | OnePath OneCare | Up to $10 million combined across all TPD cover for Any Occupation and Own Occupation | PDS 1 October 2025, page 32 | | AIA Priority Protection | Up to $5 million for Any Occupation and Own Occupation, subject to occupation category eligibility | PDS 9 November 2025, Section 12.1, page 221 | | Acenda Insurance | $5 million for professional occupations (surgeons, accountants, solicitors); $3 million for other occupations | PDS 27 September 2025, page 19 | | NEOS Protection | $3 million for both Own Occupation and Any Occupation | PDS 6 December 2024 | | Encompass Protection | $3 million | PDS 26 September 2025 | | Futura Protection | $3 million | PDS 1 October 2025 | | ClearView ClearChoice | $3 million at age 65 and over, with higher amounts available before age 65 depending on occupation | PDS May 2024 (with update effective 5 June 2025), page 40 | | TAL Accelerated Protection | Set in adviser-facing rate tables rather than the PDS; supports multi-million-dollar TPD sums for white-collar occupations | TAL adviser rate tables | | Zurich Wealth Protection | Set in adviser-facing rate tables rather than the PDS; supports multi-million-dollar TPD sums for white-collar occupations | Zurich adviser rate tables |

For sums above an insurer's standard limit, financial-justification underwriting applies. Income evidence, assets, and dependants are all assessed.

Common considerations that move the number

• Children at home. Each dependent child adds future costs (education, support). Add an income-replacement window to the youngest child finishing high school or tertiary study.
• Stay-at-home partner. A non-earning partner who would need to step in (or step out of the workforce) to provide care changes both the income line and the ongoing-care line.
• Existing default super cover. Most super accounts include some default TPD. Audit the current sum insured, the definition (Any Occupation is the default), and the master-policy renewal rules before sizing new cover. See how TPD insurance works with superannuation.
• Pre-existing conditions. A condition that limits which insurers will offer cover (or imposes exclusions or loadings) can change which insurer's PDS the sum insured is sourced from. See how TPD insurance handles pre-existing conditions and the IMFL health-conditions database for the underwriting outlook by condition.
• Choice of Own Occupation vs Any Occupation. Own Occupation increases the probability of a successful claim for white-collar occupations, which raises the premium for the same sum insured. See own occupation vs any occupation TPD.

Reviewing the number

Circumstances drift. Most clients ask about a review at these moments:

• At mortgage refinance.
• After the birth or adoption of a child.
• After a change of occupation or significant earnings change.
• Around 50 years old, when the cost-vs-cover trade-off changes.

Built-in indexation on a retail policy keeps the sum insured tracking CPI between reviews. It does not protect against changes in dependants or debt level.

For the full picture on cost see how TPD insurance premiums are calculated. To begin sizing your own cover, the IMFL TPD quote page shows indicative premiums across the panel.