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TPD and Income Protection Insurance for People with a Chronic Illness


TPD and income protection claims for chronic illness

Many people who suffer from a chronic illness such as Multiple Sclerosis, Cancer, Motor Neurone Disease, Parkinson’s Disease, Chronic Heart Disease, Fibromyalgia, Depression or Chronic Fatigue Syndrome have potential superannuation insurance entitlements that they are unaware of that could make a substantial difference to their lives. 

What is TPD insurance?

Almost all super funds provide automatic Total and Permanent Disability (“TPD”) insurance when you become a member of the super fund. Many super funds also provide income protection insurance.

TPD insurance will usually pay a lump sum to you in the event that you are unable to return to your work, or other work using the skills that you already have. The lump-sum TPD benefit is often over $100,000 and can be much more than that. The amount of your insurance cover will usually depend on your age and the super fund that you are a member of.

Many people have TPD insurance cover with more than one super fund and can claim more than one TPD benefit.  

What is Income Protection insurance?

Income Protection insurance usually pays you a monthly insurance benefit of approximately 75% of your salary for either 2 years or until age 65 and with some insurance policies, sometimes for the rest of your life.

To claim an Income Protection benefit you usually need to show that you can’t do your job for the time being due to your physical or psychological medical condition. You will also usually need to show that you are regularly attending your doctor.

In our experience, most people who suffer from a chronic illness do not want to stop work, and instead will do whatever is necessary to stay in the workforce, including:

  • changing jobs;
  • reducing hours; and
  • changing the duties they perform, that is a change to light or modified duties.

Stopping work or reducing your hours can impact your TPD or Income Protection insurances

Many people do not realise that any of the above can sometimes affect your right to claim a TPD benefit or might make your claim much harder, and in some instances can reduce the amount of your entitlements.

Berrill & Watson Lawyers encourage anyone who is considering reducing their work hours or changing jobs to contact us first so that we can check your super free of charge. We can provide you with free advice before you make any decisions so that you don’t lose out.

Looking for free advice about your TPD or Income Protection insurance entitlements? Feel free to get in touch directly with today’s blog writer, Paul Watson.

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