An injury or serious illness does more than just hurt your health. It stops your income. It puts pressure on your mortgage. It creates stress for your family.
Most South Australians know about Workers Compensation. However, very few know about a financial safety net that sits inside their superannuation fund.
It is called Total and Permanent Disability (TPD) insurance.
If you cannot work due to injury or illness, you may be entitled to a significant lump sum payout. This applies even if your injury did not happen at work.
At Mahony’s Lawyers, we help everyday South Australians access these hidden entitlements. Here is everything you need to know about making a claim.
What Is TPD Insurance?
TPD insurance is a policy that covers you if you become “totally and permanently disabled.”
Most people have this cover automatically. It is usually included in the fees your employer pays into your superannuation fund.
The purpose of the money is simple. It replaces the wages you would have earned if you had kept working until retirement. It provides you with financial security when you need it most.
Key facts about TPD:
It is not a loan. This is an insurance payout that belongs to you.
It covers any injury or illness. You can claim for physical injuries, cancer, heart conditions, or mental health struggles.
It is separate from work. You do not need to prove your job caused the injury.
You can read more about how TPD works on the Moneysmart website.
Am I Eligible for a Payout?
Eligibility depends on the specific policy in your super fund. However, there are general rules that apply to most claims.
To qualify, you usually need to prove two things.
You have stopped working. You must show that you have been unable to work for a specific period. This is often three or six months.
You are unlikely to return to work. You must show that your condition prevents you from doing your usual job or any job you are suited for by education, training, or experience.
It does not mean you must be bedridden. It simply means you cannot do the work you are qualified to do.
How Does the Claim Process Work?
Making a claim can feel overwhelming when you are unwell. The process involves dealing with both your super fund and their insurer.
Step 1: finding your policies We often find that clients have multiple superannuation accounts from different jobs. You may have insurance in more than one fund. We track them all down for you.
Step 2: gathering medical evidence We need reports from your treating doctors and specialists. These reports must confirm that your condition is permanent.
Step 3: lodging the claim We submit the forms and legal arguments to the insurer. Large funds have specific requirements. You can see an example of the claim steps on the Cbus Super website.
Step 4: the assessment The insurer reviews your claim. This is where delays often happen. We manage all communication to keep things moving.
Why Do I Need a Lawyer?
You might wonder if you can handle this yourself.
The reality is that insurance companies are businesses. They are focused on their bottom line. They often look for reasons to deny claims or reduce the payout amount.
Common tactics include:
Claiming you could work in a different field that you have no experience in.
Arguing your condition is not “permanent” yet.
Relying on confusing definitions in the fine print.
The APRA prudential standards require insurers to act fairly. However, they often push the boundaries.
Having specialist superannuation TPD lawyers on your side sends a clear message. It tells the insurer that you know your rights and you are ready to fight for them.
What If My Claim Is Denied?
A rejection letter is not the end of the road.
Insurers often get it wrong. They may have missed key medical evidence or misinterpreted the law.
We have a strong track record of overturning rejected claims. We can challenge the internal review decision. If they still refuse to pay, we can escalate the matter to the Australian Financial Complaints Authority (AFCA) or take court action.
Is This the Same as Workers Compensation?
No. TPD is completely separate.
Workers Compensation is only for injuries that happen at work. It is governed by state laws. You can check the Law Handbook of South Australia for details on permanent impairment thresholds for work injuries.
TPD Insurance covers you 24 hours a day. It covers you if you are injured at home, on the road, or on the sports field.
You can often claim both. However, receiving one payout can sometimes affect the other. It is vital to get expert advice on compensation generally to ensure you maximise your total payout.
Why Choose Mahony’s Lawyers?
We are not a big national “factory” firm. We are local.
Mahony’s Lawyers has been supporting South Australians since 1978. When you call us, you speak to a team based right here in Adelaide. We understand the local medical system and the challenges you face.
We work on a No Win, No Fee basis.
We pay for the medical reports upfront.
We cover the filing costs.
You pay us nothing unless we win your claim.
This means you can find out if you are eligible without any financial risk.
Get a Free Claim Check Today
Do not let your insurance money sit unclaimed.
If an injury or illness has stopped you from working, let us check your superannuation for you. It costs nothing to find out where you stand.
Contact Mahony’s Lawyers today to speak with our team, or verify your eligibility directly on our superannuation & TPD page.
We are here to help you secure your future.
FAQ
Can I claim if I have already resigned or lost my job?
Yes. You can usually claim as long as you were insured at the date you became disabled. It does not matter if you have since resigned, been made redundant, or if your super account is now closed. We just need to prove that your injury or illness stopped you from working while the policy was active.
Will a TPD payout affect my Centrelink payments?
It might. A TPD payout is an asset. If you receive a lump sum, it could impact your eligibility for the Disability Support Pension (DSP) or other means-tested benefits. We recommend getting financial advice before the money lands in your bank account to protect your entitlements.
Is there a time limit for making a claim?
Strictly speaking, there is often no deadline for lodging a TPD claim. You can sometimes claim for an injury that happened years ago. However, it is much harder to find medical evidence the longer you wait. We strongly advise starting the process as soon as possible.
Do I have to pay tax on the payout?
If you are over 60, the payout is usually tax-free. If you are under 60, a portion of the money may be taxed when you withdraw it from your super fund. However, special tax concessions often apply to disability payouts. We can guide you through this, but we also suggest speaking to a financial planner.