Total and Permanent Disability (TPD) cover is one of the most valuable — and most overlooked — benefits available to working Australians. It sits quietly inside most superannuation accounts, and if illness or injury stops you from working, it can pay out a substantial lump sum. This guide explains how it all works.
What is TPD insurance?
TPD insurance pays a one-off lump sum if you become totally and permanently disabled and are unlikely to return to work. “Permanent” usually means you can't return to your normal kind of work on an ongoing basis — not that you can never do anything again. Most cover is held automatically inside super.
Who is eligible for a TPD claim?
You may be eligible if:
- You stopped working because of injury or illness (physical or psychological).
- You had active TPD cover at the time you stopped working.
- Your condition meets the policy's definition of total and permanent disability.
Not sure? Our free eligibility check gives you a quick answer with no obligation.
“Own occupation” vs “any occupation”
The definition that applies to you matters enormously. Own occupation cover assesses whether you can return to your specific job, while any occupation cover assesses whether you can do any work suited to your training, education and experience. The latter is harder to satisfy, so identifying the right definition is a critical early step.
Mental health TPD claims
Psychological conditions such as depression, anxiety and PTSD are among the most common grounds for successful TPD claims. They can attract extra scrutiny from insurers, so strong medical evidence and a consistent treatment history are important. Read our guide on claiming TPD for a mental health condition.
How much could you receive?
TPD lump sums commonly range from $50,000 to $300,000+, depending on your level of cover. Because many Australians hold cover across several super funds, the combined benefit can be significantly larger. See our breakdown of how much a TPD claim is worth.
What if your claim was rejected?
A knock-back is common and often not the end. Many rejected claims are later approved with better evidence or by escalating to the Australian Financial Complaints Authority (AFCA). Our guide on rejected TPD claims explains your options.
Frequently asked questions
What is a TPD claim?
A TPD (Total and Permanent Disability) claim is a claim for a lump-sum insurance benefit, usually held inside your superannuation, paid when illness or injury permanently stops you from working.
How do I know if I have TPD cover?
Most super funds include default TPD cover, with premiums deducted from your balance. Check your super statements — including old funds from previous jobs — or let us help you identify your cover.
Can I claim TPD for a mental health condition?
Yes. Depression, anxiety, PTSD and other psychological conditions are common and valid grounds for a TPD claim in Australia, provided they prevent you from working in line with your policy definition.
What if my TPD claim was rejected?
A rejection is often not final. Many declined claims are later approved on review or dispute with stronger medical evidence or by escalating to AFCA. Get the reasons in writing and seek a second opinion.
How much does a TPD claim pay?
Payouts vary by your level of cover, commonly ranging from $50,000 to $300,000 or more, and can be higher when you hold cover across multiple super funds.