A TPD benefit is a lump payment paid out to members when they can prove they are unable to work in their usual occupation up until retirement age. Many people stop working and have no idea they are eligible.
The Usual Superannuation TPD insurance policy
Superannuation funds don’t promote TPD benefits or call their members to get an updated employment status. This is why many Australians do not know they are eligible to claim their TPD benefit.
TPD cover is provided to you by your superannuation fund via an insurer within a group insurance policy. Group insurance policies will cover a group of members within a superannuation fund.
The big insurers who provide group insurance policies to superannuation funds are AIA, Metlife, Onepath and TAL.
The TPD cover dollar value in group insurance policies is linked to your age. Usually, the younger you are, the higher your cover and as you get older, the amount decreases. Superannuation funds which focus on various industries, like the building industry, may also have cover according to the risk of injury to members involved in that type of work.
It’s also possible to increase your TPD cover or have a set amount by paying premiums which are deducted from your superannuation contributions.
Retail Policies and Retail Life Insurance Policies
This sort of TPD insurance cover sits outside your superannuation fund. Usually, this is set up by a financial advisor. This sort of TPD cover is much larger and takes into account the cost of living comfortably if you could no longer work.
Many insurance companies offer retail policies. The premiums charged are higher and a greater contribution from your salary goes to super each year. On the upside, you can rest assured that if you’re unable to work due to injury or illness, your TPD cover will be substantial.
Is Claiming TPD Hard?
Superannuation funds have varying definitions which apply to TPD. Some are much stricter than others.
TPD stands for total and permanent disability. The general definition for someone to satisfy TPD is that:
- The member was in gainful employment when injury or illness struck;
- And due to that injury or illness, the member is unable to return to any form of work for which the member is educated, trained or experienced.
Super funds may have unique conditions which are added to this general definition. Medical opinions are always relied upon as to whether or not a return to work is possible. PK Simpson TPD Lawyers go to special effort to make sure you treating GP or doctors are aware of the scope of the claim and how they need to assess you in light of the TPD definition. Many doctors have never come across a TPD claim before and often wrongly assume that it’s always possible for someone find work.
How Do I Know How Much Cover I Have?
Finding the correct amount of TPD cover can be difficult for people without experience. Your TPD cover is connected to when you last worked. You may also have multiple TPD claims. An inactive membership doesn’t always mean you do not have TPD cover. The investigation is a technical one based on dates and your work history and the right questions need to be asked.
If I Am TPD what do I get?
If your TPD claim is approved, you will have access to the lump sum cash benefit known as your TPD benefit as well as full access to your superannuation account balance. It’s up to you how much you want to withdraw.
If I think I have a TPD claim what should I do?
If you haven’t been able to work due to an injury or illness or combination of the two, give PK Simpson TPD Lawyers a call on 1300 757 467. A friendly member of our team will take your call straight away and get the ball rolling.