If an injury or illness means you're unlikely ever to return to your usual work, you may be able to claim a lump sum through the insurance built into your superannuation — a TPD (total and permanent disability) benefit. It's separate from workers compensation and motor accident entitlements, and in most cases you can claim it on top of them.
TPD insurance pays a lump sum if illness or injury leaves you permanently unable to work. Most Australians hold TPD cover automatically through their super fund, with the premiums deducted from their super balance — which is why many people have cover they don't even know about. The lump sum can help with living costs, medical care, home modifications or paying down debt.
Inside super, the fund's trustee holds a group insurance policy with a life insurer. You claim through your fund, and both the insurer and the trustee need to be satisfied before the benefit is paid into your super account and released to you.
Under the standard definition used inside super, you'll generally need to show that, after a waiting period (commonly three to six consecutive months off work), you are unlikely ever to return to work in any occupation suited to your education, training or experience. The exact test is set by your policy's wording, so checking the policy is always our first step.
Some points we check early:
In most cases, yes. A TPD benefit is a contractual insurance entitlement, separate from the statutory workers compensation and motor accident schemes — and it doesn't matter whose fault your injury was, or whether it happened at work. Workers compensation and CTP benefits cover things like treatment and lost wages; TPD is a lump sum for being permanently unable to work.
Two cautions: a small number of policies contain offset clauses that reduce the benefit by other payments you receive, and insurers do cross-check what you've said in concurrent claims — so your medical and work-capacity evidence needs to be consistent across every file. We manage that for you.
Broadly: we notify your fund and obtain the policy and your insurance history, then lodge your claim with supporting statements from you, your employer and your treating doctors. The insurer assesses the claim (sometimes with its own medical examinations), makes a decision, and the trustee reviews it before the benefit is paid into your super.
Under the Life Insurance Code of Practice, the insurer should generally decide a TPD claim within six months (longer only in limited circumstances), with progress updates at least every 20 business days. In practice, straightforward claims commonly resolve in around three to six months; complex or disputed claims can take twelve months or more.
You may hold TPD cover in several funds at once — and, subject to each policy's terms, you can potentially claim on each of them for the same disablement. People who have changed jobs often have old accounts with cover still attached. We check every fund you've held, so nothing is left behind.
Most policies set no strict deadline for lodging a TPD claim — claims can succeed years after you stopped work, because the assessment looks back to your condition at the time. But don't treat that as a reason to wait: delay degrades the medical and employment evidence a claim depends on, and if a claim is declined, strict time limits do apply to challenging the decision through the Australian Financial Complaints Authority. Early advice protects every option.
No. TPD cover responds to permanent incapacity for work however it was caused — a workplace injury, a road accident, another accident, or an illness. Fault doesn't come into it. That's also why a TPD claim can run alongside a workers compensation or motor accident claim rather than replacing it.
Possibly, yes. The question is whether your cover was in force on the date you became unable to work, not whether the account is open today. Bring us your old statements — or just the fund names — and we'll obtain your insurance history and check.
The amount is fixed by your policy schedule and typically reduces as you get older. It varies widely between funds and between members, so the only reliable answer comes from your own fund's records — which we obtain at the start of a claim.
Tax can apply to part of a TPD benefit depending on your age and how you take the money out of super, so it's important to get advice before withdrawing the benefit. We'll explain what applies in your situation.
Your first consultation is obligation-free — at Liverpool or Gregory Hills, whichever is easier. Call (02) 9602 4999, email lawyers@frisina.com.au or send us a message, and ask us how our fees work.
This page is general information only, not legal advice. Time limits can apply to compensation claims and to disputing declined insurance claims, so please get advice about your own situation — contact us or call (02) 9602 4999.