Missing work through illness or injury can cause serious mental and financial strain, especially if it's permanent. But did you know that you may be entitled to a lump-sum payment through total and permanent disability (TPD) insurance provided by your super fund?
Superannuation is something many of us take for granted until retirement approaches. But super is far more than a nest egg. If you’re forced out of work because of an illness or injury, you may be covered by an insurance policy that many Australians don’t even know exists.
Total and permanent disability (TPD) is a legal term used in life insurance policies that refers to any illness or injury that prevents a person from working. To protect you from the financial burden, Australian law requires that most super funds bundle TPD insurance with your superannuation plan.
As such, the majority of Australian workers are covered by TPD insurance through their super without even realising it.
While superannuation insurance policies vary, most contain three common elements when it comes to defining who is entitled to receive total and permanent disability benefits. You’re likely to qualify for a lump-sum TPD insurance benefit if:
*The length of the waiting period can vary from policy to policy, but it typically ranges from three to six months.
As is typical with insurance, there are often confusing conditions and clauses that can leave you scratching your head. Choosing the right super fund is largely based on your personal circumstances, but there are some variables to look out for when researching the fund’s TPD insurance arrangements:
I am claiming WorkCover, income protection and/or other benefits, so I am ineligible:
Most of the time, TPD benefits can be claimed on top of WorkCover payments, income protection, trauma insurance and other benefits.
I have a pre-existing illness or injury, so I am unable to claim:
You might still be covered if you had a pre-existing illness or injury. In these situations it's best to seek legal advice to fully understand your options and entitlements.
I am making super contributions, so I am covered by TPD insurance:
The fact that you make super contributions does not guarantee you’re covered by the fund’s TPD policy – you must still meet the specified criteria.
It’s vital you seek legal advice before making a claim. When it comes to insurance claims, what you say to the fund’s insurer can and will be investigated during the process.
By contacting us from the start, you ensure your claim will have the best possible chance of returning the maximum entitlement.
Read more about making a total and permanent disability insurance claim.
If you're unable to work due to illness or injury, you may be eligible to make a claim on your superannuation insurance. Your injury can be physical or psychological and doesn't need to be work-related. We can help you understand what options are available to you.
We have lawyers who specialise in a range of legal claims who travel to Australian Capital Territory. If you need a lawyer in Canberra or elsewhere in Australian Capital Territory, please call us on 1800 675 346.
We have lawyers who specialise in a range of legal claims who travel to Tasmania. If you need a lawyer in Hobart, Launceston or elsewhere in Tasmania, please call us on 1800 675 346.