When people talk about accessing their super due to permanent disability, they are often confused about what exactly they are accessing. There are actually two distinct things you may be entitled to when you can no longer work.
1. Your super account balance
This is the money you and your employers have contributed over your working life, plus investment returns. On grounds of permanent incapacity, you can access this balance as a lump sum or income stream before your normal preservation age. The amount depends on how long you've worked and how much has been contributed.
2. Your TPD insurance cover
This is a separate insurance benefit — typically much larger than your account balance for younger or shorter-serving workers. If you had active TPD cover and meet the policy definition, the insurer pays the insured amount (e.g. $150,000) into your super account. This is then accessible along with your account balance.
Why the distinction matters
Someone with a $30,000 super balance who also has $150,000 in TPD cover doesn't just receive $30,000 — they can potentially receive $180,000 after the insurance claim is approved. Many people don't realise the insurance is there at all.
Check both your account balance and your insurance cover via your super fund's website or annual statement. Confirm your position with a free eligibility check.