Tina and Dave are 40 years old – they met at school and both went on to further education. 
Tina became a hairdresser and has since received many awards for her hairdressing skill and innovation.
Dave became a diesel mechanic and works on large building sites.
They have two children…
…and are paying off their semi-detached home.
When Dave starts a new job, he's asked what he'd like to do with his super…
That night, Tina and Dave discuss their super including the Life and Total and Permanent Disablement (TPD) insurance included as part of the plan. After reading that 96 per cent of Australian families with children do not have adequate levels of insurance cover, they thought they should do something about it.
They investigate and find they hold reasonable policies as part of their super.  They're each covered for $800K in case of death or total and permanent disablement (TPD) 'for any occupation'. The number seems a little low, but the premiums are low compared to what some other companies are quoting.
Also, the premiums come straight out of super
…and there’s no medical exam required.
Unfortunately, Tina has a terrible freak accident.
…and Tina loses the use of her right hand.

Do you think Tina and Dave's decision to maintain their existing policy in super was wise?

Sounds fine!
The payout might be a little low but at least they’re covered.
No way!
This is a disaster waiting to happen.
Book appointment

Oh no!

Tina goes to her super company to claim for her Total and Permanent Disablement cover. To her horror, the 'any occupation' insurance cover linked to her super is of a general nature and does not take into account her occupation.

Though she can no longer work as a hairdresser, the insurance company believes that she can work elsewhere, so she is not eligible for a payout.

Choose again Continue

You're right!

Tina goes to her super company to claim for her Total and Permanent Disablement cover.

To her horror, the 'any occupation' insurance cover linked to her super is of a general nature and does not take into account her occupation.

Though she can no longer work as a hairdresser, the insurance company believes that she can work elsewhere, so she is not eligible for a payout.

Choose again Continue

The Explanation

'Any occupation' cover is what caught Tina here.

'Any occupation' means that to be eligible for her TPD payout of $800,000 Tina needs to be unable to work anywhere, for any occupation, ever.  The super and insurance company believe that even though Tina can no longer work as a hairdresser, her experience means she could, potentially, teach hairdressing, become a beauty consultant or work in some other way in hairdressing.

Because of the general nature of her insurance cover, Tina does not receive her TPD payout and has a significant loss of income. She eventually re-habilitates and works as an administrator for a large hair salon chain.

Keep going to see what Tina and Dave do next. You can also subscribe to our Bridges Insights emails or, if you need advice, ask us a question or make an appointment to talk to a Bridges Financial Planner.
Keep going Subscribe to Bridges Insights emails Need advice? Talk to a Bridges financial planner
This is general advice only Assumptions and references
Ask us anything about your financial situation.
Please provide
a few more details:
Would you like to:
Subscribe to receive Bridges Insights.
We'll email you at
Great!
A Bridges financial planner will email you an answer shortly.
Close