What does TPD mean?
TPD stands for total and permanent disability. That TPD meaning, in an insurance context, refers to a serious injury or illness that leaves a person unable to work on a long-term or indefinite basis.
When a person is considered to be permanently disabled, they may be able to claim TPD insurance benefits through their superannuation fund. This is a lump sum payment that can help them to maintain their quality of life.
The specific TPD definition varies between insurers, but having an experienced lawyer on your side helps. Generally, you must be working at the time of your disablement and be assessed by a medical practitioner as unable to return to work in any capacity to be eligible for TPD benefits.
What qualifies as total and permanent disability (TPD)?
In Australia, TPD is commonly defined as an injury or illness that results in a person being unable to work in their usual occupation or any other form of employment for which they are reasonably suited by training, education or experience.
Total and permanent disabilities can be caused by a wide range of conditions, including physical disabilities, chronic illnesses and more. There is no specific list of what qualifies as total and permanent disability, but some examples that may be covered by TPD insurance claims include:
- Severe burns
- Amputation
- Blindness
- Paralysis
- Cancer
- Brain injuries
You could still be classed as permanently disabled even when your condition does not prevent normal bodily function. You only need to satisfy the specific wording on your insurance policy. For example, some policies may consider you to be TPD if you’re unable to return to your job after a certain period of time, while others may only consider you TPD if you’re unable to work in any occupation.
Some policies also cover conditions that may not be immediately life-threatening but are expected to result in death within 12 months, such as terminal cancer. If you are unsure whether you meet the total and permanent disability definition, contact an experienced TPD lawyer such as ourselves. Chat with one of our lawyers today at no cost or obligation on 1800 958 498.
What is total and permanent disability insurance, and how does it work?
Before starting a claim, it’s important to understand how TPD insurance works in practice, from policy types to premium structures and what affects your eligibility.
Total and Permanent Disability (TPD) insurance provides a TPD benefit (a one-off lump sum payment) if you’re permanently unable to return to work due to illness or injury.
The way your cover works depends on several factors, including your level of cover, how your TPD insurance premiums are calculated, and whether your policy is automatic cover, fixed cover, or standalone.
Most TPD insurance policies are held inside super and come with default or automatic cover. However, some require a tailored application based on your family circumstances, income, and financial obligations. Policies may use variable premiums or variable age-stepped premiums, which increase as you get older. Others offer level premiums that remain fixed over time.
Some policies are bundled with life cover or trauma insurance, while others are separate. Your eligibility may also depend on your medical history, occupation, and whether a medical examination is required at the time of application or claim.
What happens if I’ve suffered total and permanent disablement?
You may be able to make a claim for total and permanent disability insurance benefits, to help cover your medical and rehabilitation costs, as well as any ongoing living expenses. This type of insurance cover is typically included with your superannuation, but it can also be purchased as part of a life insurance policy.
The TPD insurance benefit is provided as a lump sum payment. It can help with things like medical expenses, income replacement, and home care. The total payout amount will depend on how much cover is included in your policy. If you have more than one super fund you may even have multiple policies available.
It is important to note that TPD cover is different from income protection insurance, which only covers a portion of your income. Total and permanent disability insurance covers you for the total amount of your income, up to a certain limit.
A total permanent disablement claim is likely to be successful if you can show that you’ve suffered a significant impairment that prevents you from working in any capacity, no matter what the condition is or how it occurred.
How do I make a claim for total and permanent disability (TPD) insurance?
The first step is to find out if you are eligible is just to get in touch with our lawyers. We’ll help you make a disability insurance or superannuation claim by reviewing your policies. Many people don’t realise they have TPD cover included with their super fund. Our specialist TPD lawyers can investigate your entitlements with our no win no fee guarantee and then assist you moving forward if you have a reasonable basis for claiming TPD.
In order to make a successful TPD claim, we will help you to prove that your injuries or illness are so severe that you will never be able to return to work. This can include a medical certificate from your doctor or specialist, as well as identification from your employer confirming that you are not currently working. You must also be under 67 years of age at the time of becoming injured or having an illness.
Making a TPD claim can be a complicated process and most claims take between 6 to 18 months. If your claim is successful, you will receive a lump sum payment that can be used to cover any costs associated with your condition, such as rehabilitation costs and income replacement. If your claim is unsuccessful, we can appeal the decision for you. However, strict time limits apply. That’s why it’s important to contact us as soon as possible to ensure your rights are protected. Feel free to use our total and permanent disability claims checker at the top or bottom of this page for a quick assessment. If you feel uncertain about how to tackle your next steps, please contact us and speak to our TPD claim team for guidance.
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What is TPD? – FAQs
TPD insurance generally covers you if you’re permanently unable to work again due to a medical condition, serious injury, or permanent illness. Policies may cover physical or psychological conditions and sometimes include exclusions (e.g., injuries caused by a self-inflicted act). Each policy defines eligibility differently. Some are based on what is considered your usual occupation (‘own occupation’) while others are based on any suitable role.
The ideal amount of TPD cover depends on your income, financial obligations, and family circumstances. Think about how much you’d need to provide financial support for yourself and any dependents if you couldn’t work again. Many policies offer default levels of cover, but you can often increase it based on your needs.
Permanent impairment is a medical assessment indicating you’ve lost the ability to perform certain functions long term. While it may support your claim, permanent impairment alone doesn’t automatically qualify you for TPD. You usually need to prove you’re permanently unable to work.
The cost of TPD insurance can vary depending on factors like your age, medical history, and occupation. These details may also affect how much cover you have by default through super, and whether you need to apply for additional cover.
Some super funds apply variable age-stepped premiums, meaning your payments increase as you get older, while others offer level premiums that remain consistent. Policies with higher levels of cover or own occupation definitions may come with higher premiums, but could improve your chances of a successful claim.
If you’re unsure what you’re paying for or how your policy might perform if you ever need to claim, our team can review your TPD policy and explain what your cover includes. Don’t hesitate to reach out for obligation-free advice.
