WHAT IS TPD INSURANCE?

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Total and Permanent Disability (TPD) insurance is most often found attached to your superannuation membership. 

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It is a type of life insurance which offers protection in the form of a once-off lump sum benefit payment in circumstances where you have ceased work entirely due to injury or illness. The amount of the payment depends on your age and other factors.

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Eligibility to claim is usually dependent on medical opinions and evidence from your doctors about your likelihood of ever again returning to work, including any work which is reasonably within your education, training or experience. 

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The main requirements are usually a waiting period of 3 or 6 months where you must remain totally unfit for all work and certified by doctors as likely to be unfit for all generally comparable work for the foreseeable future.

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Some total and permanent disability insurance policies allow for a change in occupation due to injury or illness whilst still entitling you to a lump sum payment. These are known as 'Own Occupation' policies where a person is covered for injury or illness in the event they are unable to return to their usual occupation or most recent occupation. 

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HOW DO I KNOW IF I HAVE TPD INSURANCE?

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Some people have purchased separate insurance policies through a bank or other provider, however, most Australian's have total and permanent disability insurance via their superannuation funds. 

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Almost all workers in Australia are paid contributions into their superannuation funds and many of those funds (including industry super funds) usually have default life insurance cover where you are automatically provided with life insurance under a policy of insurance as provided by that fund's 

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