Total and Permanent Disability Insurance (TPD)) can be described as a financial safety net as the policy provides financial benefits to policy holders who, as a result of either an injury or an illness, can no longer work in their usual work role or can no longer work at all.

There are two ways that you can obtain Total and Permanent Disability (TPD) insurance cover:

1. TPD cover can be purchased through a policy of insurance; or
2. Your super policy may have TPD cover. You can usually access this cover if you are deemed to be unable to work again or you have become seriously disabled. Every super policy will have different terms, conditions and definitions relating to TPD. Your super fund’s product disclosure statement will provide further insight.

Your current Superannuation Statement will reveal if you have access to compensation via a TPD insurance policy. Depending upon the insurance policy, you may have access to payments regardless of if you can return to work or not.  Your policy may also provide benefits to family members in the event of the policy holder’s death.

TPD is usually accessible by the policy holder in the event that they succumb to an illness or serious injury.

What is important to remember is that TPD insurance is a contract between you and the provider of the insurance policy.  Thus, the terms and conditions of each policy will vary from insurer to insurer.  Each insurer will have different criteria for establishing if someone is deemed to be “totally and permanently disabled”.

There are two ways that you can obtain Total and Permanent Disability (TPD) insurance cover:

1. TPD Can be purchased as through a policy of insurance; or
2. Your super policy may have TPD cover. You can usually access this cover if you are deemed to be unable to work again or you have become seriously disabled. Every super policy will have different terms, conditions and definitions relating to TPD. Your super fund’s product disclosure statement will provide further insight.

How do I know I can make a TPD claim?

TPD insurance is a contract between you and the insurance provider of the policy.  Thus, each insurer will have different criteria for establishing if someone is entitled to access their TPD policy.

If you do have TPD insurance, usually, if you can establish the injury or illness has:

• Prevented you from currently working; and
• You can no longer perform your current job or any other type of job reflecting your current skills, education or training.

You can make a TPD claim.

You do not need to prove to your insurance provider that your illness or injury was the fault of someone else or resulted from your work.

Your insurance policy provider, such as your super fund, will usually have all of the necessary forms available online. These forms will need to be filled out in order to have your claim assessed by the insurance provider.

The answer to questions on these forms helps to determine if your TPD claim will be successful or not. We highly recommend that you contact us for a free initial consultation before initiating this process with your insurance provider.

A review of your policy’s product disclosure statement will help to determine when you should lodge your TPD claim. We can assist you in this process.

Depending upon your policy, you may be able to claim benefits as soon as you are forced to stop work. Some other policies however, require that you have to prove that as a result of your injury or illness, you have been unable to work for a period of at least six months.

How long does the TPD claim’s process take?

There are a number of factors that will impact how long the process can take. These factors include:

• The complexity of your illness or injury; or
• The complexity of the policy’s criteria; or
• Being able to provide sufficient medical evidence supporting your TPD claim; or
• The complexity of the policy’s product disclosure statement.

You can claim from more than one super fund or insurance policy if your fund or policy is:

• Current; and
• Are independent of each other.

Will my WorkCover or Centrelink benefits be affected by my TPD claim benefits?

WorkCover: TPD benefits do not usually affect your WorkCover benefits. .

Centrelink:  The Australian Taxation Office regards TPD claim benefits as an income. Depending upon the amount of claim benefits you receive, your Centrelink benefits may be impacted. We encourage you to contact Centrelink directly to seek advice in relation to this issue.

What kind of payout can I expect?

This varies depending on the amount you are insured for according to your policy and is individual to each policy holder.

Is my TPD claim amount tax deductable?

There are complex taxation rules relating to different types of TPD insurance policies. We highly recommend seeking advice from either the Australian Taxation Office or a tax adviser.

The following link may provide further assistance to you:

https://www.tal.com.au/voice-for-life/insurance/claiming-tax-deductions-on-insurance-premiums

You may be able to access your super policy early if you are:

• Experiencing extreme financial hardship; or
• You can argue that you should be able to access your super policy early on compassionate grounds. Examples of such grounds include:
  • Being at risk of losing your home;
  • Having unexpected and significant medical expenses;
  • Palliative care expenses;
  • Temporary residents leaving Australia permanently;
  • Paying your dependent’s funeral expenses;
  • Your super policy has less than $200.