TPD stands for Total and Permanent Disability. It's a type of insurance designed to provide a lump-sum payment if you become so severely disabled that you're unable to ever work again. Many Australians have TPD insurance attached to their superannuation fund, often by default.
When you join a super fund, you might automatically be enrolled in default TPD coverage (along with other forms of insurance like life insurance). These default policies are often affordable, but it's crucial to verify the coverage amounts, which can often be very low. In the event you are injured, lawyers can assist with navigating the specific definitions. These vary from policy to policy and you must meet in order to be eligible for a lump sum payment.
If you are injured or ill, TPD Insurance pays you a lump sum in the event you are unlikely to ever return to work again due to your injury or illness. Every TPD insurance policy is different, so it is important to retain lawyers to review the clauses in the contract that are applicable to your claim.
If you meet the eligibility requirements, TPD insurance can offer a lump sum payment designed to help you with costs such as:
Note: While TPD cover is designed to help you with these costs in the event you are totally and permanently disabled and unable to return to work, the amount you receive will be a set lump sum amount determined by your policy. The default lump sum varies by Superfund and often by your age. Some funds, such as Australian Retirement Trust, have “opt-in” white collar coverage This coverage provides a 50% additional payout at no extra cost, and most funds provide the option to pay more to increase your coverage.
While insurer definitions vary, your eligibility to make a claim will depend on the requirements in your specific policy, which commonly include:
Often, there are other exclusion and eligibility clauses within your policy that your insurance company will require you to provide evidence to prove before you are eligible for the lump sum payment.
Disclaimer: This information is designed for general information in relation to Queensland compensation law. It does not constitute legal advice. We strongly recommend you seek legal advice in regards to your specific situation. For help understanding your rights, please call 1800 960 482 or request a free case review to talk to one of our lawyers today.