Superannuation & TPD Claims

Expert advice will make all the difference 

Superannuation/Total and Permanent Disablement (TPD) Claims

Did you know that if you hold a superannuation policy and you become sick, injured or in the worst case die, then you or your estate/beneficiaries may be entitled to compensation or other monetary benefits under your superannuation policy. 

Too often, individuals are not aware of the benefits that they may be entitled to under their superannuation policy should they be faced with a situation which renders them unable to return to employment and earn a living. 

Entitlements may include lump sum payments and continuing benefits, which may help to ease the financial strain, you may be experiencing as a result of your unforseen circumstances.

The ultimate outcome of your claim and how much you may be entitled to will depend on the wording of your trust deed or insurance policy and most importantly the medical evidence that is available regarding your condition and capacity for work.

At Veritas we have a team dedicated professionals who may assist you during the assessment process of your claim to ensure that you have completed all the relevant forms correctly and provided all supporting documents and information which will ultimately maximise your claim and ensure that you receive a positive outcome. 

Should you already be in a dispute with a superannuation fund or an Insurer then our TPD lawyers can help you to fight the fund or the Insurer’s decision and take the necessary court action on your behalf should this be required. For more information call 131 LAW (529) today to speak to an expert today.

TPD Explained - What you need to know

Total Permanent Disability (TPD) is a phrase used in the insurance industry and in law. Generally speaking, it means that because of a sickness or injury, a person is unable to work in their own or any occupation for which they are suited by training, education, or experience. An individual or group of individuals can insure themselves against it through a disability insurance policy, as part of a life insurance package or through worker's compensation insurance.

Total and Permanent Disablement Insurance is designed to provide a lump sum benefit to the life insured in the event of a medically diagnosed event that renders the claimant unable to work again. TPD Insurance is generally used to cover debts and the ongoing living expenses of an individual to reduce the ongoing financial burden of loss of income.

There are three main types and definitions of TPD Insurance:

  • Own Occupation TPD - the claimant must be unable to work in their own occupation ever again.
  • Any Occupation TPD - the claimant must be unable to work in their occupation and also any occupation that they are suited to via education, training or experience ever again.
  • Non-Occupational TPD - the claimant must be unable to conduct 2 of 5 activities of daily living.

The Own Occupation definition is generally considered to provide the greatest level of protection, with the Non-Occupational TPD requiring the greatest level of disablement before a claim will be considered. TPD Insurance in Australia can be owned and paid for from superannuation accounts. When TPD Insurance is held in Superannuation, the 'Any Occupation' definition is normally offered as the level of disablement required by Superannuation Law is based on 'Any Occupation.'

TPD Insurance when taken for personal protection is generally not tax deductible and claim payments are not taxable. When TPD Insurance is held in superannuation however the benefit is generally taxed when paid.

The maximum level of cover normally available with one insurer in Australia is generally $3 – $5 million with the oldest entry ages varying between 55 - 62.

Theresa Armstrong
Michael Short