TPD Claims — Get the Lump Sum You're Entitled To After Serious Illness or Injury

The easiest way to identify all your super funds (including lost and inactive funds) is through the ATO's myGov portal. Log in to myGov, link the ATO service, and look for the "Super" section which lists all funds associated with your tax file number. Once you have the fund names and member numbers, contact each fund directly — or ask a lawyer to do so — to obtain your insurance certificate showing your TPD cover type and sum insured. Some funds also allow you to check cover online through their member portal.

TPD claims typically require detailed reports from your treating general practitioner and relevant specialists (for example, cardiologist, orthopaedic surgeon, psychiatrist) confirming your diagnosis, treatment history, prognosis, and opinion on your capacity to work. You will also need a functional capacity evaluation or other evidence addressing your ability to perform work-related tasks. Employment records confirming your last date of work, job description, and the nature of your role are also required. A vocational assessment addressing alternative occupations is sometimes needed, particularly for any-occupation policies.

After identifying your cover, you obtain and complete the fund's TPD claim form and gather the required medical and employment evidence. The completed claim is submitted to the fund, which forwards it to the insurer for assessment. The insurer may then request additional information, arrange an independent medical examination, or request clarification from your doctors. Decision timelines vary widely — simpler claims may be decided in three to six months, while complex claims can take twelve to eighteen months or longer. During this period a lawyer can manage the process and keep pressure on the insurer to avoid unnecessary delays.

Some TPD policies — particularly older or default super fund policies — use an "activities of daily living" (ADL) test rather than an occupational test. Under an ADL definition, you are assessed on your ability to independently perform basic functions such as bathing, dressing, feeding, toileting, and mobility. These policies were typically provided to members who were not in paid employment at the time they joined the fund. ADL definitions are generally considered less favourable than occupation-based definitions and can be harder to satisfy for conditions like chronic pain or mental health that do not prevent daily self-care tasks.

TPD insurance benefits are almost universally paid as a lump sum. Upon a successful TPD claim, the insured sum is paid to the super fund and then released to you (together with your preserved super balance) as a single lump sum payment, subject to tax if you are under age 60. You can also choose to leave the money inside the super environment as a pension, though most TPD recipients take the lump sum given the tax concessions available for those under age 60 suffering permanent incapacity. A financial adviser can help you make the best decision once the claim is approved.

Once a TPD claim is approved, a condition of release is triggered under the SIS Act, meaning the entire preserved balance of your super account — including the TPD insurance payout — can be released to you. The TPD insurance payout is added to your superannuation account and the full amount can then be withdrawn. Tax on the TPD benefit depends on your age and the tax components of the fund — tax offset concessions are available for those under 60 who are permanently incapacitated. Getting tax and financial advice before making your withdrawal decision is advisable.