Total and Permanent Disability (TPD) benefits are usually lump sums paid to you if you can’t ever go back to your normal job or any other suitable work because of your injuries or illnesses.
What is TPD?
You don’t usually have to be unfit for all work; only suitable work given your education, training or experience for the long-term.
For example, if your work background is in manual labour or process work and you have a bad back, you might have a TPD claim even if you could do clerical work without any skills or experience to do that work.
Some TPD policies include retraining clauses. For your claim to be successful you would have to show you can’t go back to work that you could reasonably retrained to do.
Some others have easier definitions (own occupation) or harder definitions (activities of daily living). It’s important to check the policy wording.
What injuries/illnesses are included?
Unlike Workers Compensation, you can include all your health problems for a TPD claim.
Some policies might exclude pre-existing conditions or mental health problems, but not often. Most Super funds include ALL your health problems, including pre-existing conditions.
What benefits are paid for a TPD claim?
A TPD benefit is usually an insurance lump-sum payment calculated at the date you last worked.
If the benefit is through a Super fund, it will also usually include your superannuation account balance.
There may be tax payable on the TPD benefit if it’s through superannuation.
Superannuation payouts are taxed at a concessional rate and can affect your Centrelink payments. However, you can defer or reduce a payout by transferring some of the lump sum into a superannuation rollover fund.
Help with your TPD claim?
It’s important to get help with a TPD claim.
Berrill & Watson specialise in superannuation, insurance and financial advice claims and disputes. Unlike other plaintive law firms who work across many areas, we only do superannuation, insurance and financial advice claims and disputes. We are experts in what we do.
Contact us for free advice and help with your TPD claim.