Superannuation - Death & TPD
If any medical condition or injury affects your capacity to work, you may be able to access a lump sum disability insurance benefit called Total and Permanent Disability (TPD) from your superannuation fund.
Depending on your superannuation scheme, a TPD benefit may be available to you in addition to the superannuation contributions to the fund made by your employer and/or you.
The amount of the benefit can range from a few thousand to hundreds of thousands of dollars.
You can make a TPD insurance claim in addition to personal injury entitlement claims or pensions.
To be successful in a TPD insurance claim, you must meet the definition of Total and Permanent Disability in line with the superannuation TPD Insurance policy. Accordingly, TPD may be defined as:
- permanently unable to perform your normal occupation, or
- permanently unable to perform your normal occupation and/or an occupation suitable to your training and experience, or
- permanently unable to perform any work at all.
If your superannuation fund has already paid out your superannuation, you may still be able to make a TPD insurance claim, so long as your superannuation policy was active at the time you acquired your medical condition or injury.
You can make multiple TPD insurance claims, if at the time you acquired your medical condition or injury, you were a member of more than one superannuation scheme that provides for a TPD insurance benefit.
Usually there is no time limit in making a claim, however strict time limits do apply if you need to challenge the superannuation fund’s decision to reject your claim.
TPD insurance claims can be complicated resulting in a long process.
