Zurich Financial Services has introduced a more flexible structure for holding total and permanent disability (TPD) insurance inside and outside superannuation.

The change will allow clients to structure “own” and “any” occupation TPD cover depending on their financial and personal needs.

Zurich National Manager Sales Strategies and Research Marc Fabris told insuranceNEWS.com.au the changes will give clients flexibility on the tax treatment of their premiums.

“The premium can be split between within superannuation and outside depending on the cashflow needs of the client,” he said.

“The client could pay two-thirds of the premium through their superannuation fund and one-third outside, but it is still the same TPD policy.”

Similarly, claim payments would be made both inside and outside superannuation.

This will allow the client to be paid immediately for a claim without having to seek early release approval from the regulatory authorities, Mr Fabris says.

Again depending on the premium split, two-thirds of the claim could be retained within the superannuation fund while a third is paid immediately.

“This will enable clients to have the best of both worlds,” he said.

“We see it as a particular benefit for self-managed superannuation fund trustees who can now structure their insurance in a more tax-effective way without compromising on accessibility of claim benefits.”

Zurich has also revised its definitions for heart attack to be more aligned with new clinical guidelines.

The change is also seen as “future-proofing” the clause to ensure ongoing diagnostic techniques are covered.