For doctors and medical professionals, your ability to work is one of your most valuable financial assets. Years of training, specialist expertise and future earning potential mean that protecting your income and financial position can be an important part of your broader financial strategy.
At Walshs, we work with medical professionals throughout their careers to help them grow, protect and manage their wealth. Personal insurance forms an important part of that conversation, particularly as the cost and structure of Total and Permanent Disability (TPD) insurance continues to evolve.
KPMG’s Life Insurance Insights 2025 reported that premium rates for individual-advised TPD insurance increased by 5.4% over the previous 12 months, indicating continued repricing in response to claims experience.
So, what is driving these changes, and what should medical professionals be considering?
Why Are TPD Insurance Premiums Increasing?
One of the biggest changes has been the nature and frequency of TPD claims.
Traditionally, TPD insurance was commonly associated with serious physical illness or injury that permanently prevented someone from returning to work. Today, mental health conditions are an increasingly significant cause of permanent disability claims.
Data from the Council of Australian Life Insurers (CALI) shows that mental health now accounts for almost one in three TPD claims paid. Research commissioned by CALI and undertaken by KPMG also identified a 732% increase in the rate of mental health-related TPD claims among Australians in their 30s over the past decade.
For medical professionals, this is particularly relevant given the physical and psychological demands that can accompany a career in healthcare.
Other Factors Affecting Premiums
Claims experience is only part of the picture.
Many insurance policies include automatic annual indexation, which increases your level of cover over time. While this can help maintain the real value of your insurance, it may also result in your sum insured becoming higher than you need as your circumstances change.
Your mortgage may reduce, children may become financially independent, or your investments and superannuation may increase.
This is why Walshs believes insurance should be reviewed regularly rather than simply established and forgotten.
Changing insurers also requires careful consideration. A new policy may involve medical underwriting, exclusions, loadings or different policy definitions. An existing policy should generally not be cancelled until any proposed replacement has been appropriately assessed and confirmed.
How Is the Insurance Market Responding?
Insurers are continuing to look at ways to balance meaningful protection with the long-term sustainability of their products.
Alongside premium adjustments, some insurers have introduced newer TPD structures that may use different claim definitions or benefit-payment arrangements for certain conditions.
These products may provide another option where the cost of traditional cover has become difficult to maintain.
However, lower premiums do not automatically mean better cover.
At Walshs, our starting point is understanding what you are trying to protect and how your insurance fits into your overall financial position before considering changes to products or cover levels.
Why Own Occupation TPD Can Matter for Medical Professionals
For doctors and specialists, Own Occupation TPD can be particularly relevant.
This type of cover may provide a benefit where you can no longer perform your specific occupation, even if you may still be capable of working in another role.
For example, a surgeon may remain capable of undertaking another form of employment following an illness or injury but may no longer be able to operate. For someone whose earning capacity is closely connected to highly specialised skills, that distinction can have significant financial consequences.
The suitability of Own Occupation cover will depend on your individual circumstances and the terms of the relevant policy.
What Should You Do if Your Premiums Increase?
A premium increase does not automatically mean your insurance should be reduced or cancelled.
Instead, it may be a prompt to review whether your current arrangements remain appropriate.
At Walshs, an insurance review can consider:
- whether your current sum insured remains suitable
- whether automatic indexation is still appropriate
- changes to your mortgage and other debts
- your family and dependant needs
- investments, superannuation and other assets
- alternative cover structures
- existing policy definitions and benefits that may be difficult to replace.
For some clients, retaining their existing cover may remain appropriate. For others, there may be opportunities to adjust their level of cover or consider alternative structures.
Importantly, insurance should not be considered in isolation. It should work alongside your financial plan, cash flow, debt, superannuation, investments and longer-term wealth strategy.
As your medical career progresses from training through to consultancy, private practice or practice ownership, your financial circumstances and protection needs can change significantly.
If your premiums have increased, or it has been some time since your insurance arrangements were reviewed, speak with the Walshs team about whether your current strategy remains aligned with your circumstances and broader financial plan.
Frequently Asked Questions
What is TPD insurance?
TPD insurance is designed to provide a financial benefit if you meet the policy definition of being totally and permanently disabled due to illness or injury.
Why are TPD insurance premiums increasing?
Premiums can be influenced by several factors, including claims experience, increasing claim complexity, age, indexation and changes to insurer pricing.
What is Own Occupation TPD insurance?
Own Occupation TPD generally assesses your ability to perform your specific occupation rather than any occupation, subject to the particular policy terms and definitions.
Should medical professionals cancel TPD insurance if premiums increase?
Not necessarily. Cancelling or replacing existing cover can have significant consequences. Your current cover, health, financial position and replacement options should be considered before making changes.
How often should doctors review their insurance?
Insurance should be reviewed regularly and particularly following significant changes such as increasing income, purchasing property, starting a family, becoming a consultant or moving into private practice.
Sources
Council of Australian Life Insurers, Mental ill health is straining Australia’s safety net, July 2025; CALI/KPMG, Australia’s Mental Health Check Up; KPMG Australia, Life Insurance Insights 2025.
