An Activities of Daily Living (ADL) test refers to the process of assessing a worker’s ability to perform personal care and recreational and social activities. An occupational therapist manages the process, and it usually is conducted at the worker’s home.

In general, ADL tests do not depend on a specific occupation. On the contrary, it depends on how independent you are and how well you take care of yourself. In a household, activities of daily living (ADLs) are a list of everyday tasks necessary for one to function and live independently. ADLs include bathing, dressing, toileting, transferring (getting in and out of bed or chair), eating, and continence. The most common triggers are activities of daily living for long-term care insurance purposes. When an individual is unable to perform at least two ADLs without assistance, they are likely to qualify for a long-term care claim.

Contrary to this, in case of a total and permanent disability, you should be able to claim successfully if you are unable to work in either any capacity or in any occupation based on your previous education, skills, and training (depending the definitions within policy).

You may be able to make a TPD insurance claim under your policy if you are unable to work – for at least 6 – 12 months due to illness or injury. Your illness or injury doesn’t need to be work-related or caused by your employer to make a claim. The most important thing that you must consider is this: if you have not worked for at least 6 – 12 months because of injury or illness, you may be eligible for a TPD lump sum claim if it is likely you will never be able to work again, i.e. permanently disabled.

While you definitely can buy TPD insurance directly from insurers as an independent product, you may already have coverage under another policy (such as within your superannuation fund), so you may already be receiving a level of coverage.


Eligibility of TPD insurance and ADL tests

Notably, the standard total and permanent disability insurance quote require an individual to be permanently unfit to perform their usual job or any other suitable work given their education, training, or experience, perhaps with a retraining clause included.

The ADL definition, on the other hand, requires that a person be unable to carry out two or more daily living activities. To illustrate, feeding, bathing, dressing, toileting, walking, and transferring from bed are all considered daily living activities.

Aspect Underwriting provides TPD insurance for individuals and groups. Visit our website today to learn how we can assist you in obtaining the most suitable policy for you.

Mike Wallis

Mike has over 25 years experience, having spent his first seven years working as a Broker at Jardine Lloyd Thomson in Melbourne and in 2002 was transferred to JLT’s Accident and Health Department in London. For four years (2002 – 2005) Mike was a specialist A&H Lloyd’s Broker and during this time developed excellent relationships with the Lloyd’s A&H underwriting fraternity. In 2006 he returned to Australia in a senior broking position with overall responsibility for Placement Strategy, including the implementation of underwriting facilities and the various authorities granted by Lloyd’s. Mike was the underwriter at two specialist Underwriting Agencies prior to founding Aspect Underwriting in 2016.