Total and Permanent Disability (TPD)

Total and permanent disability claims (TPD) provide a lump sum payment if you cannot return to work.

The definition of “total and permanent disability” differs for each policy. However, it generally covers conditions that are unlikely to improve and prevent your return to work, given your educational, training, or experiential background. This means you only need to show that you cannot return to work that you are suited for. This only includes occupations within your skills and work history. As with any insurance policy and compensation scheme, there are strict criteria you must fit to be able to claim.

When assessing TPD claims, consideration is given to all of the following:

• Physical limitation
• Psychological conditions
• The realistic likelihood of returning to work
• The prospect of you finding employment

Income Protection (IP)

Income Protection is insurance that provides you with an income stream for a defined period if you cannot work due to illness or injury. Income Protection benefits can be held within superannuation, or they can be held directly through a private insurance policy.

If you cannot work due to your injury sustained, IP insurance could give a monthly benefit for a fixed and predetermined period.

Policy terms and entitlements vary between insurance policies. However, Income Protection benefits are generally paid as a monthly benefit, that is 75% of your pre-disability income. This is paid on the condition that you can no longer perform your occupation due to your medical condition and that you are under the regular care of a doctor, these benefits may be paid for 2 years, 5 years or until the age of 65.

A Death Benefit

A Superannuation Death Benefit is a financial benefit to the beneficiaries of your policy in the event of the death of a loved one.

This payment is made to a dependent beneficiary or the Trustee of a deceased estate following the person’s death. The payment can include any remaining funds in the deceased’s superannuation account balance, along with a death insurance payment to be paid out to beneficiaries. If you have not designated a beneficiary, the Trustee of your superannuation fund will distribute your death benefit to your estate or decide which eligible beneficiaries the funds should be awarded to based on their discretion. If there is more than one beneficiary, the superannuation fund’s Trustee will determine how to divide the payment among the beneficiaries. The distribution decision will be determined on the extent of each beneficiary’s dependence on the deceased, such as financial dependency and specific relationship factors.

Each superannuation fund differs in its criteria and requirements for determining eligibility. Your entitlements depend upon the superannuation fund’s terms of the ‘trust deed’, as well as the terms of the specific insurance policy.

Our team is more than capable of assisting you in assessing whether or not you can lodge a claim. To help us out, we will need the following:

• Your Superannuation Fund Financial Statement from when you stopped working or when the injury occurred. This Statement will indicate if you were insured at the appropriate time.
• Medical evidence to prove that you were unable to return to work. This is dependent upon the definition of your fund.

If you approve us to act on your behalf, we will request further medical reports from your treating doctors and specialists regarding your injuries or illness. These will be used to make a claim on your behalf for your insured benefit.

A claim can be lodged as soon as you stop work.  This means you can claim your Superannuation Insurance Benefits when you can’t work due to illness, injury or disability. You can also request your superannuation account balance as a lump sum or to be made available in instalments once you have retired.

For a disability benefits claim, you will need a claim form, medical reports and relevant documents from medical and other relevant authorities. Tax reports and written submissions will also be required. A helpful rule of thumb is that the more information gathered, the better for your claim.

For death benefits claims, you need a claim form and any papers showing your relationship to the deceased and any financial dependents.

We can assist you if you need a hand in getting the documents required to lodge a claim. From the forms themselves to guidance throughout the procedure and even collating and submitting all the information, we’re here to help.

Your injury and incapacity does not have to be work-related to make a claim for income protection or total and permanent disability insurance.

Yes, you can have multiple Total Permanent Disability (TPD) claims. This is more usual for individuals who are a member of multiple superannuation funds.

Yes. If you have a pre-existing claim with us, we’ll probably already have all the evidence required collated. This makes for an advantage as we will be better positioned to assess the likelihood that you will benefit from a successful superannuation claim.

Yes, you will generally have to see insurance doctors. These appointments are called Independent Medical Examinations and must be carried out by a certified medical representative.

Your TPD claim will likely stop. However, you might still be eligible to receive partial disability payments depending on the type of work being performed and the circumstances in which you return to work.

As each claim is unique, the Barbante team will offer correct, tailored legal advice and ensure you understand your situation.

When a loved one passes away, any dependents of the deceased or their estate can claim superannuation death benefits. This includes a legally married spouse, de facto partner (including same-sex partners), children, financial dependants and inter-dependants.

If a claim is rejected, you can submit a complaint about the decision within 28 days. If you lodge an internal complaint, the insurer or trustee will be required to decide within 90 days.

Appeals can be made to the Superannuation Complaints Tribunal within 28 days or to a court.

A TPD payout from a superannuation fund is not considered taxable income. However, you may have to pay superannuation lump sum withdrawal tax if you transfer it into your regular account(s).

Tax requirements can also vary depending on factors such as your age, pension status, and policy conditions. It is always recommended to obtain financial advice before you claim your payout.

Depending on the type of Centrelink entitlements you receive, a TPD payout may affect your regular payments. This is particularly relevant for pensioners who plan to transfer their TPD payout into an everyday account. When in doubt, report your financial situation to Centrelink.