Compensation is money given in recognition of someone’s loss, suffering, or injury. As such, compensation is not something that we usually associate with our superannuation, which is the government’s compulsory saving for retirement scheme. However, if you have experienced an injury or illness which has severely impacted your ability to earn an income, you can turn to your superannuation fund for support.
Total Permanent Disablement
Total and permanent disablement or disability cover (TPD) is a lump sum payment that you can claim if you are permanently unable to work due to injury or illness. TPD is a form of insurance that is often bundled with death cover within a superannuation policy.
Many people with an active superannuation policy (that is, they or their employer are making contributions), are unaware that they have this form of insurance. If you are facing a serious illness or you have been injured, you should always check to see what options are available to you. Unfortunately, finding out if your superannuation policy includes TPD cover is not as straightforward as it should be. You may benefit from speaking to a solicitor who can review your policy and product disclosure statement to see if you are covered for permanent disability.
How Much is a TPD Payout?
The amount of a TPD payment varies based on the age of the insured person, the nature of the disability and its financial impacts, and the work that they did prior to becoming disabled. These compensation claims can result in seemingly very large payouts, but it is important to remember that these funds may need to last for a long time.
A TPD payment can be used to pay for medical expenses, but it can also be used for the daily costs of living if you are permanently unable to work. As this is a lump sum, it will be up to you to manage the money to help support you and your family now that your ability to earn income has been impaired.
Do I Need a Solicitor to Access My TPD?
As your superannuation exists for your benefit, you might think that you can access your TPD without needing to engage a solicitor. However, it is wise to bear in mind that the insurance company that provides your TPD cover through your superannuation is not interested in paying out more than the minimum. You should ensure that you receive advice and put forward the best possible case before signing anything or completing any forms with your superannuation fund. This will help to ensure that you receive everything that you deserve. After all, if you are permanently unable to work, this lump sum may need to last a long time.
Our compensation team specialises in superannuation claims and we are highly skilled at ensuring you receive the benefits of any insurance policy which may apply to you. If you need assistance, contact one of our lawyers at [email protected] or call 02 6621 2481 for a no-obligation discussion and for expert legal advice.