While nobody wants to live their lives in constant fear and worry, it’s wise to think about what would happen if you were uninsured and sustained an injury or illness that meant you couldn’t work in your usual occupation again. This is why you need TPD (Total and Permanent Disability) insurance and why you need to know what kind of TPD cover is included in your Superannuation Fund.
TPD insurance is designed to provide support for you and your family should anything unfortunate occur that prevents you from working in your usual job. With TPD insurance, you can make sure your family’s financial future is assured in the event of a long-term effects from an injury or disability.
Total and Permanent Disability Insurance
The amount of TPD lump sum compensation you receive depends on the premium you choose. The funds you receive may cover hospital, medical and rehabilitation costs at the time of your injury and in the future.
Depending on the TPD policy and cover you have selected, you pay a regular premium weekly, monthly or annually. The cost of your premium will depend on the amount of TPD cover you have chosen and upon factors including your age, medical history, lifestyle and the industry in which you work.
TPD Policy Premiums, Terms and Conditions May Differ
Before you select your TPD policy, it’s a good idea to check the product disclosure statement as not all TPD insurance terms and conditions are the same.
Some insurance policies with TPD cover will pay a benefit if you can no longer work due to injury or illness in your usual job. This is called “Own Occupation Benefit”. Other policies may include “Any Occupation Benefit”, which provides cover should you be unable to work in any occupation that fits your education, training or experience.
TPD insurance premiums, terms and conditions vary according to these definitions, so we recommend that you check with your financial adviser before making any decision on the type of TPD insurance you purchase.
TPD Cover and Insurance in Superannuation Funds
Most superannuation funds offer income protection, life and total and permanent disability insurance coverage for their members, so check with your fund to see what they offer. Most people review their insurance policies from time to time to make sure they have the best coverage, so make sure your fund includes TPD and that it’s the right policy for your needs.
The types of life insurance in super:
There are three types of insurance typically offered to members by Superannuation Funds:
- Life cover. This is also known as death cover and it pays a lump sum or income to your beneficiaries if you have a terminal illness or you die.
- TPD insurance cover. This provides a benefit payment should you be unable to work in your usual occupation due to injury or illness.
- Income protection insurance. This cover pays you a regular income if you can’t work due to temporary disability or illness. The payments are for a specific time, perhaps two years, five years or until you reach a certain age.
TPD insurance policy in superannuation typically ends when a member reaches the age of 65, life cover ends at age 70, and policies other than super usually cover you while ever you pay the premiums.
Get Expert Help Through the TPD Helpline Australia
Even though they are eligible, thousands of Australians are not even aware that they have total and permanent disability insurance in their super or don’t know about their rights and entitlements to a TPD claim insurance lump sum payment and benefits.
Our TPD Helpline representatives know all about permanent disability TPD insurance and injury compensation claims, health conditions and injuries, whether suffered at work or not, so call us today. If you are permanently disabled, TPD Helpline Australia can help you make a TPD insurance claim and lump sum benefit, so contact us here, or on 1300 679 222.
Got a work injury claim anywhere in Australia? Call us to find out if you are eligible to make a TPD claim.
