Zurich launches ‘industry-first’ TPD option

Zurich Financial Services Australia has announced the launch of the “Continuous Care” option on its total and permanent disability (TPD) policy offering to cover ongoing care requirements in the event of a severe accident or illness, which it called an “industry-first” cover option.

While TPD cover provides a lump-sum payment, this new offering can cover ongoing support from a carer, whether it is provided by a professional or a family member, and modifications where necessary to an individual’s home or vehicle.

The “Continuous Care” option covers cases in which the relevant party has become permanently disabled and been under continuous care for at least three consecutive months, and has undergone or is continuing to undergo all reasonable and appropriate treatment, including rehabilitation.

This cover option is available for those aged 15 to 60, with a minimum coverage of $250,000 and a maximum of $5,000,000, including TPD and is paid out as a lump-sum payment.

Zurich’s head of retail, Jacqui Lennon, said the offering will better serve the evolving needs of Australians and help them balance insurance costs.

“Advancements in modern medicine, paired with significant changes to the make-up of Australia’s workforce, have led to almost 80 per cent of Zurich TPD claims not requiring ongoing, continuous care,” Lennon said.

“This landscape shift, paired with cost-of-living pressures, has created the need for a modern TPD solution that provides customers with more control over the structure and affordability of their cover.”

According to Zurich, a review of its previous TPD claims revealed that 23 per cent of those who couldn’t work would have needed ongoing continuous care. Of the TPD claims, the most common condition resulting in a need for ongoing care was nervous disorder, with 9 per cent of all claims, followed by cancer (6 per cent).

Based on a representative sample of TPD claims made between January 2022 and June 2024, Zurich found that 41 per cent required only short-term care and 31 per cent required minimal ongoing care.

While most TPD claimants don’t require ongoing care, Zurich said this option provides clients with “more affordable cover for the rarer forms of sickness and injury that can happen unexpectedly”, providing necessary financial support to those who need it.

Highlighting the economic impact of illness in Australia, Zurich’s “Cost of Care” analysis released earlier this year found that head and neck cancer and thyroid cancer had the highest average lifetime costs in 2023, totalling $109,300 each.

The report also revealed that eight of the top 10 most occurring cancers had seen an increase in the number of yearly cases since 2018, meaning more Australians are being impacted financially and otherwise by illness.

Speaking on the findings, Zurich Australia and New Zealand’s chief claims officer Matt Paterson explained how struggles related to the existing economic environment can be compounded by the cost of illness.

“There is a significant financial burden associated with the treatment of certain medical conditions in Australia. Concerningly, many of these are growing in prevalence against a backdrop of increased cost-of-living pressures and issues with access to insurance,” Paterson said.