If an illness or injury prevents you from ever working again, how will you pay the bills? Keep up with your mortgage? Protect your family?
If you’re like most Australians, you may already have a financial safety net sitting inside your superannuation fund. It’s called Total and Permanent Disability (TPD) insurance, and for many people it comes as standard when they open a super account.
This guide explains how super-based TPD insurance works, why it matters, and the steps you can take right now to check whether you have cover.
What is TPD Insurance?
TPD insurance is a lump sum payout that you can claim if you become permanently unable to work due to illness or injury.
Two Common Definitions
- Own Occupation: You are unable to return to the same job you held immediately before your illness or accident.
- Any Occupation: You are unable to return to any job suited to your education, training, or experience.
Most superannuation funds apply the stricter any occupation definition. It’s harder to prove but with the right medical evidence, successful claims are possible.
Why Does TPD Insurance Matter?
When you stop working, everyday tasks quickly become expensive sources of stress. A TPD payout can help you:
- Pay off or reduce your mortgage.
- Keep up with bills and living expenses.
- Cover medical treatment, therapy, and even home modifications.
- Provide financial security for your family if you can’t work again.
For many Australians, TPD payouts range from $100,000s to over $500,000 — a financial lifeline when it’s needed most.
Do I Have TPD Insurance in My Super?
Checking is easier than you might think. Here’s how:
Step 1: Check Your Super Statement
Look for an Insurance section. It should state:
- Whether you have cover.
- The amount you’re insured for.
- The premiums deducted from your account.
Step 2: Log in to Your Fund’s Online Portal
You’ll often find:
- The type of cover (any vs own occupation).
- Your insured balance.
- Current premium payments.
Step 3: Contact Your Super Fund Directly
Ask them:
- Do I have TPD cover?
- What amount am I insured for?
- Which definition of TPD applies?
- Are there exclusions (e.g. mental health conditions, waiting periods)?
Step 4: Request a Copy of the Product Disclosure Statement (PDS)
The PDS sets out all rules, definitions, and exclusions. It’s technical and full of jargon, but it’s the final word on what your cover includes.
Common Reasons People Think They Don’t Have TPD Cover
Most Australians have some level of default cover, but there are exceptions:
- Under 25 with a low balance: Under the Protecting Your Super reforms, many younger members don’t receive automatic cover unless they opt in.
- Low or inactive balances: If your account hasn’t received contributions for 16 months, insurance may be cancelled.
- Opted out: Some cancel their cover to reduce premiums, only to regret it later.
Can I Have TPD Insurance in More Than One Super Fund?
Yes. Many Australians have multiple super accounts, usually from changing jobs.
- Each account may carry its own TPD policy.
- In some cases, you may be able to claim against each fund separately.
- Before consolidating accounts, check whether you’ll lose valuable insurance.
How to Make a TPD Claim
The process usually involves:
- Notify your insurer/fund that you wish to make a claim.
- Complete forms: member statement, employer statement, and medical practitioner statement.
- Provide medical evidence: reports from your GP and specialists confirming your condition and permanent incapacity.
- Meet the waiting period: most policies require 3–6 months off work.
- Assessment: insurers review your evidence and may request an Independent Medical Examination (IME).
Note: The process often takes several months, but many Australians succeed with strong medical evidence and preparation.
Common Traps and Pitfalls
- Assuming you’re covered: Not all super accounts have TPD insurance.
- Confusing death cover with TPD cover: Death cover only pays if you die.
- Not realising cover was cancelled: Low or inactive balances can trigger automatic cancellations.
- Assuming “own occupation” applies: Most funds use the stricter “any occupation” definition.
- Delaying a claim: Medical evidence may go stale, and policies can lapse.
Real-Life Example
Case: Lisa, 42, retail worker
- Problem: Lisa developed chronic depression and anxiety and had to stop working.
- Assumption: She didn’t know her super fund included insurance.
- Discovery: Checking her statement, she found $180,000 in TPD cover.
- Result: With psychiatric evidence confirming her incapacity was permanent, she successfully claimed her payout.
- Lesson: Don’t assume. Always check your super.
Tips to Protect Yourself
- Check your super statements at least once a year.
- Log into your fund’s portal to confirm your insurance cover.
- Don’t consolidate accounts until you’ve reviewed each fund’s insurance.
- Keep medical records if you’re struggling to work.
- Seek advice early if you think you may need to make a claim.
FAQs
Is TPD insurance automatic in every super account?
No. Automatic cover depends on your age, balance, and whether the account is active.
How much is the payout?
It varies. Typical cover ranges from $50,000 to $500,000.
Does TPD insurance cost extra?
Yes. Premiums are automatically deducted from your super balance.
Can I increase my cover?
Yes. Most funds allow you to apply for more cover (subject to health checks).
Does TPD cover mental health?
Usually yes, but some policies exclude it. Always check your PDS.
Can I claim TPD from more than one fund?
Yes. If you have multiple policies, you may be able to claim against each.
Yes — there may be a financial lifeline hidden in your super.
TPD insurance can provide a life-changing lump sum if illness or injury prevents you from ever working again. The key is knowing whether you have cover, how much you’re insured for, and what conditions apply.
By checking your super statements, logging into your fund, and asking the right questions, you can find out if this hidden lifeline is available to you.
At TPD Claims Lawyers, we help Australians every day discover and claim the TPD cover they didn’t even know they had. If you’re unsure about your super insurance or how to claim it, contact us today for a free assessment.
