Claiming TPD through super involves an insurance assessment and separate requirements for accessing money held in your fund. Understanding both helps you avoid assuming that insurance approval automatically means the money can be paid into your bank account.
Find the cover that applied
Ask your fund for your insurance history, cover amount and relevant policy documents. Some members receive default TPD insurance, but cover is not automatic for everyone. Age, account balance, inactivity and individual choices can affect whether insurance starts or continues.
Check previous funds too. Before closing an account or transferring your super, find out whether doing so would end insurance you may need.
Prepare the claim evidence
A superannuation TPD claim needs evidence addressing the applicable policy definition. Medical reports and employment information can help explain your condition, work duties, hours and capacity for work. The insurer may also request an independent medical examination.
When preparing your records, include relevant treatment history, changes to duties and attempted returns to work. Explain uncertain dates or gaps honestly rather than trying to make the records appear more consistent than they are.
Understand the roles of insurer and trustee
The insurer assesses whether your claim meets the insurance policy’s requirements. The trustee also considers whether your benefit can be released under superannuation rules. These are distinct questions, even where the same evidence is relevant to both.
If further information is requested, ask what is needed and why. If you disagree with the decision or how the claim is being handled, you can complain to the insurer or fund. Seek advice early so any applicable complaint or legal time limits can be checked.
Payment and release
For cover held through super, the insurance benefit is generally paid into your super account. Before releasing money to you, the trustee must be satisfied that you meet an applicable condition of release.
Permanent incapacity is one possible condition. It concerns whether your ill-health makes it unlikely that you will work again in employment for which you are reasonably qualified by education, training or experience. Approval under the insurance policy does not replace this assessment.
Before withdrawing money, ask your fund for a breakdown of the benefit and any tax that may apply. Obtain financial or tax advice about your circumstances rather than assuming the entire payment will be tax free.
KSC Law can help identify your cover, prepare the claim and explain the legal steps. Book a free consultation about your TPD insurance.
Related reading: Do I qualify for a TPD claim · How much is a TPD payout
Further reading
Moneysmart: how TPD insurance works · Australian Financial Complaints Authority (AFCA)