What is the difference between 'own occupation' and 'any occupation' definitions in life insurance?

While 'own occupation' and 'any occupation' definitions are most relevant to TPD (Total and Permanent Disability) insurance, understanding these concepts helps when purchasing life insurance bundles in Australia. 'Own occupation' TPD means you're unable to work in your specific occupation due to disability. For example, a surgeon who loses hand function and can't perform surgery would be covered, even if they could work as a medical administrator. 'Any occupation' TPD requires you to be unable to work in any occupation for which you're reasonably suited by education, training, or experience. Using the same surgeon example, they might not be covered if they could still work in medical consulting or administration. Own occupation definitions provide broader, more comprehensive coverage and are consequently more expensive, typically 20-40% higher in premiums. They're particularly valuable for specialists, professionals with specific skills (surgeons, dentists, musicians, professional athletes), and high-income earners whose earning capacity is tied to specialised work. Any occupation definitions are narrower and less likely to result in claims being paid, but premiums are lower. They might suit general workers whose skills are transferable, those with tighter budgets prioritising basic protection, and individuals in low-skill or transferable skill occupations. Many Australian policies offer hybrid definitions, combining both types for maximum protection, or 'any occupation' definitions with lower evidentiary requirements. When purchasing life insurance packages that include TPD, carefully review the TPD definition – it significantly impacts whether you could successfully claim. 'Own occupation' provides superior protection but costs more, while 'any occupation' is economical but harder to claim on.