TPD (total and permanent disability) is a type of insurance that provides you with a payment if you’re forced to stop work. When you make a TPD claim you’re claiming a lump sum payment on top of your superannuation fund balance.

If you’ve ever paid into a super fund, it’s likely you have TPD insurance connected to your super. If you’ve been off work for three or more months due to injury or illness, with no prospect of returning to work, then you may be eligible to make a TPD claim.

It’s important to note that the definition of TPD varies between policies – for example, your policy might cover you for:

• Being unlikely to be able to return to work in your occupation.
• Being unlikely to be able to return to work in any occupation.

A successful TPD claim needs to be backed by proof that you meet the criteria outlined in your TPD insurance policy. If the insurance assessor decides you don’t meet the criteria, your TPD claim will be rejected.

Yes, if you have more than one TPD policy, you may be able to make multiple TPD claims – one for each policy. This is quite a common situation, as many people have multiple superannuation funds as a result of changing jobs over the years and may have a TPD policy through each fund. Making a successful TPD super claim against one policy has no effect on any other TPD insurance you may have, but you’ll need to submit a separate claim against each policy.

A TPD payout is not classed as taxable income, but if you withdraw any part of your TPD payout from your super fund as a lump sum, you may have to pay “superannuation lump sum withdrawal tax”. The amount payable is different for everyone, and if you have multiple super funds, the amount will be different for each fund you make a withdrawal from.

You can make your own claim without using a TPD claim lawyer. However, it’s common for people to have their TPD claims rejected by insurers because they fail to submit a thorough application, including all the documents and medical records needed to substantiate their claims. In other words, many people simply complete the application forms and assume their claim will be approved. But if you do that and fail to supply all the evidence needed to support your claim, it’s like the insurer will either reject your claim or keep asking you for more information, and the process can really drag on. This is why so many people who handle their own claims end up failing to get the TPD compensation they’re entitled to – they simply give up out of frustration.

A specialist TPD claim lawyer can compile all the evidence and submit your claim on your behalf, so the insurance assessor has all the information they need and you’re more likely to get your TPD claim approved.

It can be hard to know how much TPD cover you have, as you may have multiple super funds and TPD policies from changing jobs over the years. If you can’t work and you’re not sure about your cover, call us and we’ll find out for you. It’s a free service.

When claims are simply ‘processed’, important details can be missed. We’ll match you with a specialist TPD lawyer, build a personal relationship with you and your family, and look beyond your obvious injuries or illness to claim everything you’re entitled to. This can make a big difference to the amount of compensation you receive.