Can TPD insurance be cancelled or changed by the insurer?

Insurers do have certain rights to change or cancel TPD insurance, though consumer protections limit these powers. Once your policy is issued and in force (after the cooling-off period), the insurer generally cannot cancel your policy as long as you continue paying premiums, though there are exceptions. Insurers can cancel for non-payment of premiums, fraud or misrepresentation in your application (material non-disclosure), or illegal activities. Insurers can increase premiums or change policy terms, but this usually applies to all policyholders in a particular class, not just individuals. You must be given advance notice of premium increases or significant policy changes. For policies inside superannuation, insurers may increase premiums based on age (stepped premiums) or apply blanket increases to all members, subject to trustee approval. Some policies have guaranteed renewable clauses preventing cancellation regardless of health changes. Importantly, insurers cannot cancel your policy just because you develop a health condition or become a higher risk, as long as you disclosed your health accurately when applying. You have more control - you can cancel anytime, reduce coverage, switch between stepped and level premiums (subject to conditions), or change your sum insured (though increases may require medical underwriting). Always review renewal notices for changes to terms, premiums, or coverage. If an insurer tries to cancel your policy unfairly, you can complain to AFCA.