Explore our detailed glossary of superannuation, TPD, and insurance terms. Understand key definitions and how Claimsplus Lawyers can assist with your claims.

Understanding Superannuation, Insurance, and Claims Terms

At Claimsplus Lawyers, we’re here to help you navigate the complex world of superannuation and insurance claims. Whether you’re dealing with Total and Permanent Disability (TPD) claims, Income Protection (IP) claims, or need advice on accessing your superannuation, understanding the relevant terms is essential.

This guide breaks down some of the most important superannuation-related concepts, helping you understand how they apply to your claims and financial security.

Accumulation Superannuation Account

An Accumulation Superannuation Account is where the money you contribute to your super is invested. The contributions and investment returns are yours to access when you retire or meet other eligibility criteria for early access (like illness or injury). These accounts are the most common type of super fund today.

Life and disability insurance premiums are typically paid from your accumulation account, ensuring that you have insurance coverage if the unexpected happens.

Age-Based Insurance Cover

Age-Based Insurance Cover is a type of life and disability insurance where the level of cover changes as you age. Your insurance coverage often decreases as you get older, which may affect your payouts in TPD or IP claims. Always check your policy details with Claimsplus Lawyers to understand how this may impact your claim.

Agreed Value Income Protection Policy

An Agreed Value Income Protection (IP) Policy provides a pre-determined monthly benefit in the event of illness or injury rather than calculating your payout based on a percentage of your pre-disability income. This type of policy can give you more financial certainty when making an IP claim.

Any Occupation (TPD)

Any Occupation is a common term in Total and Permanent Disability (TPD) insurance. To make a successful TPD claim under an "Any Occupation" definition, you must prove that you're unable to work in any occupation that fits your education, training, or experience—not just your current or previous job.

It’s crucial to review the specific wording in your policy, as this can vary. Claimsplus Lawyers can help you interpret your TPD policy to ensure that you meet the criteria.

Cease Work Date

The cease work date is a critical term in superannuation and insurance claims. It refers to the date when you officially stop working due to illness or injury. This date is pivotal for TPD and IP claims, as it typically triggers your eligibility to claim these benefits. Accurately documenting this date is essential, and Claimsplus Lawyers can help ensure all paperwork is properly completed.

At Work/Active Employment

To qualify for default insurance cover under a group policy, you often need to meet the "At Work" or "Active Employment" criteria. This usually means that you were working a minimum number of hours per week without any illness or injury restrictions. If you meet these conditions when you join a super fund, your insurance cover is activated.

Benefit Period (Income Protection)

The Benefit Period refers to the length of time during which your Income Protection (IP) payments will continue. Common benefit periods include 2 years, 5 years, or until ages 65, 67, or 70, depending on your policy. Understanding this period is vital for long-term financial planning in case of a serious injury or illness.

Compassionate Grounds Withdrawal

You may be able to access your super early if you meet certain compassionate grounds, including:

Urgent medical treatment not covered publicly.
Palliative care.
Emergency mortgage payments to prevent losing your home.
Home modifications for disability.
Funeral or burial expenses for a dependent.

In cases of Financial Hardship, withdrawals are capped at $10,000 and taxed at 22%. If you’re unsure about your eligibility, consult Claimsplus Lawyers to guide you.

Death Benefit

A Death Benefit is paid as a lump sum to your dependents or beneficiaries in the event of your death. This often includes life insurance attached to your superannuation account.

Default Insurance Cover

Most superannuation accounts offer Default Insurance Cover for TPD, Income Protection, or Death Benefits. This insurance is often automatic if you meet the "At Work" conditions when you join your super fund. Claimsplus Lawyers can help you understand your entitlements under default cover and assist with making claims.

Defined Benefit Superannuation Account

A Defined Benefit Superannuation Account calculates your entitlements using a specific formula, rather than being based on the amount contributed. While this protects against investment losses, it also means you won’t benefit from significant investment gains.

These types of accounts are more common among government employees, and they often provide disability pensions and lump sums if you retire early due to illness or injury.

Dependant (Superannuation Context)

In superannuation, a Dependant is someone entitled to receive your superannuation benefits upon your death. This can include:

A spouse or de facto partner (including same-sex partners).
A child (including adult children).
Someone financially dependent on you.
Someone in a close personal relationship with you who shares household tasks and finances.

Claimsplus Lawyers can assist in determining who qualifies as a dependant under your super fund and guide your beneficiaries through the claim process.

Duty of Disclosure

When applying for an insurance policy, you must disclose all relevant medical and lifestyle information. Failing to provide accurate information could void your insurance policy. Claimsplus Lawyers can help you ensure that you meet your duty of disclosure when applying for insurance or making a claim.

Financial Hardship

If you have been receiving Centrelink benefits for over 26 weeks and are facing financial difficulties, you may be eligible to withdraw up to $10,000 from your super under Financial Hardship. Claimsplus Lawyers can assist with this application process.

Fixed Insurance Cover

This refers to disability insurance where the level of cover remains the same over time. However, premiums may increase as you get older. It’s important to understand how this may impact your insurance claim.

Group Insurance Policy

A Group Insurance Policy covers multiple people—usually members of a super fund or employees of a particular employer. This provides a more affordable way to access TPD, Life, and Income Protection Insurance. Claimsplus Lawyers can help you navigate your rights under group insurance.

Guaranteed Renewable (Life Insurance)

Life insurance policies in Australia are typically Guaranteed Renewable, meaning they cannot be canceled by the insurer as long as you continue paying your premiums.

Income Protection (IP)

Income Protection Insurance provides monthly payments if you’re unable to work due to illness or injury. Benefits are usually payable for 2 or 5 years or until age 60, 65, or 70, depending on your policy. Claimsplus Lawyers can help you make an IP claim and ensure that you receive the maximum payout you're entitled to.

Indemnity Income Protection Policy

An Indemnity Income Protection Policy calculates your monthly benefit based on your Pre-Disability Income, typically over the last 12 months. This can affect your payout if your income fluctuated.

Level Premium

With Level Premiums, your insurance premium does not increase with age. Instead, the premium is calculated based on your age at the time you apply for coverage. This can offer long-term savings compared to stepped premiums, which increase as you get older.

Medical Attendant’s Statement (MAS)

A Medical Attendant's Statement is a key document completed by your doctor to support your claim for TPD, Income Protection, or early release of superannuation due to Permanent Incapacity. Claimsplus Lawyers can help ensure that your medical evidence is properly submitted.

Mortgage Protection Insurance

This insurance covers your mortgage repayments if you're unable to work due to illness or injury.

Mortgage Protection Insurance is a specialised insurance product designed to help homeowners protect their most significant financial asset—their home—if they cannot meet their mortgage payments due to illness, injury, or death. This insurance can be a lifeline for individuals who cannot work for an extended period and are at risk of defaulting on their mortgage, potentially losing their home.

There are two main types of Mortgage Protection Insurance:

Lump Sum Payment on Death or Permanent Disability
- In the event of your death or if you become permanently disabled and unable to work, Mortgage Protection Insurance provides a lump sum payment that either fully repays or partially covers your mortgage. This type of coverage ensures that your loved ones are not burdened with mortgage repayments in your absence.
- If you are eligible for Total and Permanent Disability (TPD) benefits, a lump sum payment from your TPD insurance or mortgage protection policy may also be used to pay off your mortgage.
Income-Based Mortgage Repayments
- This form of Mortgage Protection Insurance offers monthly payments that are equivalent to your mortgage repayments. It kicks in if you're temporarily unable to work due to illness or injury. It is similar to Income Protection Insurance, but it specifically covers your mortgage.
- The monthly payments continue for a set period (e.g., 1-2 years) while you are off work due to a medical condition. This ensures your mortgage repayments are made on time, reducing financial stress during your recovery.

Own Occupation (TPD)

An Own Occupation policy for TPD is more favourable than "Any Occupation." It pays out if you can no longer perform the specific job you were doing before your injury or illness. These policies typically come with higher premiums but are more likely to result in successful claims.

Permanent Incapacity (PI)

If you're deemed Permanently Incapacitated, you may access your super early. This usually requires certification from two doctors. Claimsplus Lawyers can help you with the process of getting your super released on medical grounds.

Stepped Premium

With Stepped Premiums, your insurance premium increases each year as you age. This is common in superannuation insurance policies and should be considered when planning long-term financial security.

Terminal Illness

A Terminal Illness diagnosis, certified by a doctor, allows you to access your super and possibly an insurance lump sum early.

Total and Permanent Disability (TPD)

A TPD benefit is paid as a lump sum if you cannot return to work due to injury or illness. Two doctors must certify that you’re unable to work in any occupation for which you're qualified. Claimsplus Lawyers can guide you through this claim process.

Waiting Period (Income Protection)

The Waiting Period is the time you must be off work before Income Protection payments start. Common waiting periods are 30, 60, or 90 days, with payments made monthly after that period.

Waiver of Premium

Many Income Protection policies offer a Waiver of Premium, meaning you don’t have to pay your premiums while receiving benefits.

If you have any questions, please don't hesitate to contact us.

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Personal Insurance Glossary