Superannuation Total & Permanent Disability Insurance

We are Australia’s Superannuation Total & Permanent Disability (TPD) Claims Experts

The general definition for total and permanent disability cover is the following:

“A member ceases to be gainfully employed due to injury or illness for a period of 3 or 6 months and after satisfying the fund that the member is unable to return to their usual occupation or any employment for which they are educated, trained or experienced.”

Each insurer has their own definition for total and permanent disability (TPD) and within that will define certain words further restricting and tightening the definition. Policies will also set out various definitions of TPD which apply to its members depending on your type of cover.      

Preservation Age and gaining access to your Super

Once you have reached your preservation age and you have permanently retired, your superfund will release your account balance. The preservation age varies with funds. It can range from 55 to 65 years old. If you have reached your preservation age, your TPD benefit and account balance will not be taxed when released to you.

If you are under your preservation age when claiming your total and permanent disability benefit a certain lump sum portion will be taxed and portion will be tax-free. The amount you will be taxed can only be calculated by the superfund at the end of a claim.

It’s important to remember that a Total and Permanent Disability (TPD) benefit is a separate insurance claim which sits separate to your account balance. On approval of your claim, you will have access to your account balance as well as your TPD Insured benefit which is a lump sum amount.

Permanent Incapacity Claim vs TPD Claim

Some people do not hold TPD cover within their super policy. You can still gain access to your account balance by way of a permanent incapacity claim. Special medical reports are still required. Superannuation funds will still assess these claims seriously as these are financial funds they use for investment opportunities.

Psychological injuries resulting in TPD claims

Psychological injuries are best diagnosed by a psychiatrist. Usually your GP and a psychologist will assess you prior to being referred to a psychiatrist. They will also have a clinical history noting your depression and anxiety and other mental disorders. If your GP doesn’t doesn’t raise the issue, it’s best to raise it with your GP yourself. In Australia, a Mental Health Care Plan allows you to have 10 free visits to a psychologist. Your GP provides a referral for this.

It’s very important to have the right medical evidence to support your TPD claim. PK Simpson also has access to specialist doctors who can add further support to the medical evidence already compiled.

Psychological Disorders where we have had successful TPD claims include:

• Major Depression / Severe Depression
• Anxiety
• Post Traumatic Stress Syndrome (PTSD)
• Paranoia
• Schizophrenia
• Bi-Polar
• Mood Disorders
• Personality Disorders
• Substance Abuse Disorders (Alcohol Addiction, Drug Addiction)
• Panic Disorders (Panic attacks)

Often, these disorders come in combinations. Many people who have suffered injuries in traumatic accidents or life debilitating injuries will then manifest various types of mental disorders. A good TPD lawyer will be able to identify the signs and symptoms of mental disorders and recommend you attend a specialist to have the condition diagnosed and documented so that the evidence can support your TPD claim.

Read more: Declined Superannuation TPD and Income Protection