TPD Claims During Employment

Navigating the Complexities of TPD and IP Claims in Superannuation

When facing a severe illness or injury, understanding the claim options within your superannuation fund can be challenging. This guide clarifies the possibilities of lodging Total and Permanent Disability (TPD) claims and Income Protection (IP) claims concurrently.

Total and Permanent Disability (TPD) Claims

A TPD claim is applicable when a severe injury or illness prevents you from working, with the condition expected to be permanent. Successful TPD claims often lead to a one-time lump sum payment.

Income Protection (IP) Claims

An IP claim is relevant when you're temporarily unable to work due to illness or injury. IP insurance generally provides a regular income - a portion of your usual earnings - for the duration of the policy or until you can resume work.

Making Simultaneous TPD and IP Claims

It's generally feasible to file for both TPD and IP claims simultaneously, as these insurances are usually independent components of your superannuation and don't interfere with each other. However, consider these factors:

1. Policy Definitions: The feasibility of claiming both benefits simultaneously hinges on your specific insurance policies' definitions and terms. Not all TPD and IP policies are identical.
2. Claim Processes: TPD and IP claims follow distinct processes. An IP claim focuses on your temporary incapacity for work, whereas a TPD claim addresses permanent incapacity. The evidence required, and the timeline for these claims may differ.
3. Offset Clauses: Some policies include 'offset' clauses, where payments from one type of claim may reduce the amount receivable from the other. Reviewing your policy or consulting a claim specialist to understand these potential overlaps is vital.

For further inquiries or assistance, feel free to contact us at Claimsplus Lawyers. Our team is dedicated to guiding you and connecting you with a super claims expert. 

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