Introduction to TPD Insurance Costs
When it comes to pricing TPD (Total and Permanent Disability) insurance, it gets complex - fast. TPD costs are influenced by the usual factors like age, gender, and smoking status, but also heavily shaped by your job and how your policy defines disability.
Unlike life insurance (where age and smoking are the main drivers), TPD pricing is heavily influenced by:
And the costs gaps are significant.
In fact, occupation is one of the most significant cost drivers in TPD - especially if your role involves any manual duties at all. That's why we've built this guide to TPD premiums: to show real cost examples, key pricing levers, and what to look for when comparing cover.
👉 Depending on age, occupation class, smoking status and policy structure, TPD insurance in Australia typically ranges from $30 to $1,000+ per month.
We know that range is unhelpful, bear with us while we help narrow it down.
We also provide an industry first “Adjust My Quote” functionality on our website where you can see the direct impact that different settings can have on real quotes from leading insurers - look for the “Adjust My Quote” button on the top left corner of the quote screen.
What Really Drives TPD Insurance Costs?
Based on our 2026 premium analysis across major insurers (non-smoker examples shown below), here's what matters most
💵 Insurer Pricing Differences
up to +300% Variation
Premiums vary wildly between insurers, even for identical cover.
See pricing example
35-year-old male, non-smoker, clerical, Any Occupation:
- Lowest premium: $215/month
- Highest premium: $487/month
That's more than double for the same structure and sum insured.
And this pattern continues across age groups and occupations.
In fact, at several ages and categories, we observed insurers charging up to three times more than competitors. This is why relying on “average premiums” can be misleading.
🚬 Smoking Status
Up to 200%
Smokers often pay close to double the premium of non-smokers for the same cover.
Read full breakdown
TPD claims are strongly linked to long-term chronic illness, not just mortality risk.
If you've been smoke-free for 12 months, many insurers will reclassify you as a non-smoker - unlocking significant premium savings.
👷 Occupation Category
+30-400%
Any manual component increases cost, with qualified blue-collar roles costing up to double clerical premiums.
See occupation differences
- Light manual: +30% (Any Occ)
- Light manual: +50% (Own Occ)
- Qualified blue-collar: +80% (Any Occ)
- Qualified blue-collar: +100% (Own Occ)
- Unqualified blue-collar: +400% (Own Occ)
📄 Policy Definition
+60-80%
Own Occupation provides broader protection and is priced accordingly, with the impact of “own occ” also varying based on occupation.
Compare definitions
Own Occupation pays if you can't return to your specific job.
Any Occupation requires inability to work in any suitable role.
- Clerical: +50% (Own Occ)
- Light manual: +50% (Own Occ)
- Qualified blue-collar: +70-80% (Own Occ)
Note: Learn more about occupation definitions in our TPD Own vs Any Occupation Guide.
🚹🚺 Gender
-9-10%
Females typically pay slightly less than males for equivalent TPD cover.
Average TPD Premiums (Non-Smoker Examples - $500,000 Cover, Stepped Premium)
Below are indicative averages based on our 2026 analysis. Actual premiums can vary significantly by insurer.
Male - Any Occupation
Age | Clerical | Light Manual | Qualified Blue | Unqualified Blue |
|---|---|---|---|---|
| 25-29 | $441 | $548 | $775 | $917 |
| 30-34 | $435 | $569 | $768 | $904 |
| 35-39 | $442 | $581 | $780 | $926 |
| 40-44 | $542 | $732 | $975 | $1,140 |
| 45-49 | $940 | $1,342 | $1,775 | $2,068 |
| 50-54 | $1,939 | $2,735 | $3,703 | $4,393 |
| 55-59 | $4,724 | $6,811 | $9,197 | $9,965 |
Male - Own Occupation
Age | Clerical | Light Manual | Qualified Blue |
|---|---|---|---|
| 25-29 | $654 | $934 | $1,304 |
| 30-34 | $645 | $948 | $1,297 |
| 35-39 | $654 | $961 | $1,330 |
| 40-44 | $793 | $1,163 | $1,616 |
| 45-49 | $1,372 | $2,068 | $2,927 |
| 50-54 | $2,919 | $4,391 | $6,237 |
| 55-59 | $7,474 | $11,698 | $16,485 |
- Own Occupation increases premiums roughly 50% for clerical roles
- For qualified blue-collar roles, increases approach 70-80%
- At older ages, the dollar gap becomes dramatic
Female Pricing Tables ▼
Female - Any Occupation
Age | Clerical | Light Manual | Qualified Blue |
|---|---|---|---|
| 25-29 | $401 | $522 | $704 |
| 30-34 | $400 | $518 | $706 |
| 35-39 | $406 | $524 | $718 |
| 40-44 | $491 | $666 | $896 |
| 45-49 | $864 | $1,219 | $1,636 |
| 50-54 | $1,855 | $2,577 | $3,449 |
| 55-59 | $4,561 | $6,299 | $8,452 |
Female - Own Occupation
Age | Clerical | Light Manual | Qualified Blue |
|---|---|---|---|
| 25-29 | $583 | $872 | $1,196 |
| 30-34 | $587 | $856 | $1,211 |
| 35-39 | $599 | $871 | $1,238 |
| 40-44 | $721 | $1,060 | $1,500 |
| 45-49 | $1,264 | $1,896 | $2,662 |
| 50-54 | $2,762 | $4,188 | $6,001 |
| 55-59 | $6,922 | $10,876 | $15,662 |
Given the wide variation in TPD insurance costs, try our quick calculator to get a cost estimate tailored to your situation.
Managing TPD costs - levers and trade off
After reviewing the pricing above, many people reach the same conclusion: "This is more expensive than I expected." That's understandable. TPD is one of the highest-claiming insurance types, particularly in manual occupations and at older ages.
If cost is a concern, there are legitimate ways to manage premiums.
⚖️ Compare Insurers
Even before adjusting definitions or structure, insurer pricing differences can be extreme.
For Example:
At age 35, male, non-smoker, clerical, Any Occupation:
- Lowest premium observed: $215/month
- Highest premium observed: $487/month
That's more than double - for the same occupation, same structure and the same sum insured.
This variation persists across age groups and occupation categories. In some segments, we observed pricing differences approaching 3x for the same cover.
Compare TPD Costs Across Insurers👷 Choose 'Any Occupation' definition
This is the second biggest pricing lever. Switching from Own Occupation to Any Occupation can reduce premiums by:
- ~30% for clerical roles
- 35-40% for qualified manual roles
- Even more in some blue-collar categories
Trade-off:
You must be unable to work in any occupation reasonably suited to your education, training or experience - not just your current role.
For many Australians, Any Occupation TPD still provides meaningful protection and is significantly better than having no cover at all.
Note: Learn more about occupation definitions in our TPD Own vs Any Occupation Guide.
🏦 Structure Cover Through Super
Holding TPD inside superannuation can reduce out-of-pocket cashflow pressure because premiums are paid from your super balance. This can be useful for clients prioritising immediate affordability.
Trade-off:
- It can reduce your retirement savings.
- Conditions of release must be met before benefits are paid.
- Own Occupation definitions are generally not available inside super (although there are structuring options such as Superlink arrangements).
Super funding can be an effective cashflow tool - but it should be considered alongside long-term retirement planning.
Note: Learn more about TPD in super and structuring options in our TPD in Super Guide.
📦 Bundle Cover Strategically
TPD is designed for life-altering, permanent incapacity. It works best when structured alongside other covers rather than in isolation.
Link to Life Cover
Linked TPD means your TPD benefit is connected to your Life Cover, sharing a combined benefit amount. A claim on one reduces the amount available on the other.
This can be a cost-effective way to cover large financial obligations such as:
- Mortgage repayments
- Education funding
- Clearing debts
It reduces total premiums compared to holding fully standalone covers.
Note: Learn more about Linking TPD with Life Cover in our TPD Linking Guide.
Combine with Income Protection
Income Protection (IP) covers short to medium-term illness or injury and pays a monthly income if your earnings are reduced.
Key differences:
- IP is triggered by loss of ability to earn an income, not permanent incapacity.
- IP claims are often easier and faster.
- Partial income reduction can trigger an IP benefit.
- Benefits can last 2-5 years or to age 65, depending on structure.
Many people choose to combine shorter-term Income Protection (for example, 2-5 years) with TPD
This layered approach means Income Protection is available for temporary or recoverable conditions. TPD steps in later to cover permanent inability to return to work.
Note: Learn more about Combining TPD with Income Protection and strategic bundling options in our TPD vs Income Protection Guide.
Key Takeaways for 2026
- Smoking can nearly double TPD premiums.
- Manual work increases cost by 30-40%.
- Qualified blue-collar roles can cost up to double clerical pricing.
- Own Occupation definitions increase premiums by 60-80%.
- Females typically pay around 9-10% less.
- Insurer pricing differences can exceed 2-3x.
- Quote tools, and Keep's Adjust My Quote tool, can help you explore what these options mean for you.
Frequently Asked Questions
Choosing a TPD Insurance Policy
More than any other cover type TPD costs vary significantly. Choosing the right TPD policy is about aligning cover to your own occupation, income risk, and long-term financial obligations.