Income protection insurance and TPD insurance are different products that often coexist in the same person's financial arrangements. If you've become permanently unable to work, understanding how they interact — and whether you can claim both — is important.
Income protection: what it provides
Income protection pays a monthly benefit (typically up to 70% of your pre-disability income) while you are unable to work due to illness or injury. Payments continue until you recover, reach the end of the benefit period, or — in some cases — permanently retire from work.
TPD: what it provides
TPD provides a single lump sum when you meet the policy's definition of total and permanent disability. Unlike income protection, it's a one-off payment rather than ongoing income replacement.
Can you claim both?
Generally yes — if you have both types of cover and you meet the relevant definitions for each, you can claim both simultaneously or sequentially. However, there are important interactions to understand:
- Some income protection policies cease payments if you receive a TPD lump sum that exceeds certain thresholds — check your IP policy terms
- If your TPD is held inside super and your income protection is outside super, they are administered completely separately
- Claiming income protection first — while building your TPD claim — is a common and legitimate strategy, providing cash flow during the claim process
The strategy
If you have both, typically: start the income protection claim immediately to secure monthly income, while building your TPD claim evidence over the waiting period. See our TPD vs income protection guide for more. Check your entitlements with a free eligibility check.