Most sole traders and tradies reckon they’ve got no safety net if they can’t work. You don’t get sick leave. There’s no workers’ comp sitting in the background when you’re your own boss. But there’s a good chance you’re already covered for the worst case, and you’re paying for it every time your super gets topped up.
That cover is called TPD: total and permanent disability. Here’s how it works, and how to actually get the money if you ever need it.
What TPD cover inside your super actually is
Most super funds bundle a bit of insurance in with your account by default. One of those is TPD cover, which pays a lump sum if you become permanently unable to work. We’re not talking a few weeks off with a crook back. This is for the serious stuff: a stroke, or an injury that means you’ll never swing a hammer or drive a truck again.
The premiums come straight out of your super balance, so you might never have clocked them. Log into your fund or your last statement and look for a line about “insurance” or “TPD”. Plenty of self-employed people are surprised to find they’re covered for $100,000 or $200,000 without ever filling in a form.
Because it’s automatic, the cover can be fairly modest, and if your super’s been sitting inactive it may have been switched off altogether. Better to check before you need it than after.
The bit that trips people up: “any occupation”
This is where TPD claims get sticky, so it’s worth slowing down.
Funds pay out against a definition, and there are two common ones. “Own occupation” means you’re covered if you can’t do your specific job, say bricklaying. “Any occupation” means you’re only covered if you can’t do any job you’re reasonably suited to by your training and experience.
That second one is a much higher bar, and it’s the one most default super policies use. So the self-employed bricklayer who tears a bicep and can never lay another course might still get knocked back, because the fund figures he could retrain and do something desk-based. It feels rough, and it catches a lot of claimants off guard. Knowing which definition applies to you before you lodge tells you exactly what you’re up against.
How to lodge a claim
The process isn’t complicated, but it is admin-heavy, and funds are strict about the paperwork.
You’ll usually start by contacting your super fund and asking for a TPD claim pack. From there you’re pulling together two things: medical evidence from your treating doctors and specialists, and proof of your work history with a statement about how your condition stops you working. The fund passes it all to the insurer, who assesses it against that definition we just covered.
Give yourself time. These claims commonly take months rather than weeks, and the insurer will often come back asking for more reports. Keep copies of everything you send.
What if your fund knocks back the claim?
Plenty of genuine claims get declined the first time round, so a “no” at that stage doesn’t mean the payout is gone.
Total and permanent disability cover is usually bundled into your super, and it pays a lump sum if illness or injury stops you working for good. The catch is that funds assess these claims against strict definitions, often whether you can ever return to “any occupation” you are suited to by training and experience, not just your own trade, so a payout is far from automatic and disputes are common. If a fund knocks back your claim or the medical paperwork feels beyond you, specialist firms such as Smiths Lawyers run superannuation TPD claims Australia-wide on a no win, no fee basis, so the legal cost rides on the outcome rather than landing on you upfront.
Smiths Lawyers is a Queensland compensation firm going back to 1996 that takes on TPD super claims for clients anywhere in the country, on its No Win, No Fee, No Catch basis. That structure matters when you’re already off work and short on cash, because you’re not fronting legal fees just to challenge a decision. If your claim’s been delayed or flat-out denied, that’s the kind of help worth a phone call before you write off the payout.
Where this sits alongside your other cover
TPD inside super is the long-tail safety net for the day you can’t work again. It won’t help with the smaller, more likely stuff: the six weeks off after you come off a ladder, or the broken wrist that stops you quoting jobs. That’s what Personal Accident & Illness cover is for. It replaces a chunk of your income while you get back on your feet.
The two do different jobs. One tides you over. The other catches you if the worst happens and work is off the table for good. Knowing you’ve got both, and knowing how to claim on the one already sitting in your super, is the difference between a stressful stretch and a hole you can’t climb out of.
Dig out your super statement this week. Check whether you’ve got TPD cover, what it’s worth, which definition applies, and whether it’s still active. Future you will be glad you did.
Most sole traders and tradies reckon they’ve got no safety net if they can’t work. You don’t get sick leave. There’s no workers’ comp sitting in the background when you’re your own boss. But there’s a good chance you’re already covered for the worst case, and you’re paying for it every time your super gets topped up.
That cover is called TPD: total and permanent disability. Here’s how it works, and how to actually get the money if you ever need it.
What TPD cover inside your super actually is
Most super funds bundle a bit of insurance in with your account by default. One of those is TPD cover, which pays a lump sum if you become permanently unable to work. We’re not talking a few weeks off with a crook back. This is for the serious stuff: a stroke, or an injury that means you’ll never swing a hammer or drive a truck again.
The premiums come straight out of your super balance, so you might never have clocked them. Log into your fund or your last statement and look for a line about “insurance” or “TPD”. Plenty of self-employed people are surprised to find they’re covered for $100,000 or $200,000 without ever filling in a form.
Because it’s automatic, the cover can be fairly modest, and if your super’s been sitting inactive it may have been switched off altogether. Better to check before you need it than after.
The bit that trips people up: “any occupation”
This is where TPD claims get sticky, so it’s worth slowing down.
Funds pay out against a definition, and there are two common ones. “Own occupation” means you’re covered if you can’t do your specific job, say bricklaying. “Any occupation” means you’re only covered if you can’t do any job you’re reasonably suited to by your training and experience.
That second one is a much higher bar, and it’s the one most default super policies use. So the self-employed bricklayer who tears a bicep and can never lay another course might still get knocked back, because the fund figures he could retrain and do something desk-based. It feels rough, and it catches a lot of claimants off guard. Knowing which definition applies to you before you lodge tells you exactly what you’re up against.
How to lodge a claim
The process isn’t complicated, but it is admin-heavy, and funds are strict about the paperwork.
You’ll usually start by contacting your super fund and asking for a TPD claim pack. From there you’re pulling together two things: medical evidence from your treating doctors and specialists, and proof of your work history with a statement about how your condition stops you working. The fund passes it all to the insurer, who assesses it against that definition we just covered.
Give yourself time. These claims commonly take months rather than weeks, and the insurer will often come back asking for more reports. Keep copies of everything you send.
What if your fund knocks back the claim?
Plenty of genuine claims get declined the first time round, so a “no” at that stage doesn’t mean the payout is gone.
Total and permanent disability cover is usually bundled into your super, and it pays a lump sum if illness or injury stops you working for good. The catch is that funds assess these claims against strict definitions, often whether you can ever return to “any occupation” you are suited to by training and experience, not just your own trade, so a payout is far from automatic and disputes are common. If a fund knocks back your claim or the medical paperwork feels beyond you, specialist firms such as Smiths Lawyers run superannuation TPD claims Australia-wide on a no win, no fee basis, so the legal cost rides on the outcome rather than landing on you upfront.
Smiths Lawyers is a Queensland compensation firm going back to 1996 that takes on TPD super claims for clients anywhere in the country, on its No Win, No Fee, No Catch basis. That structure matters when you’re already off work and short on cash, because you’re not fronting legal fees just to challenge a decision. If your claim’s been delayed or flat-out denied, that’s the kind of help worth a phone call before you write off the payout.
Where this sits alongside your other cover
TPD inside super is the long-tail safety net for the day you can’t work again. It won’t help with the smaller, more likely stuff: the six weeks off after you come off a ladder, or the broken wrist that stops you quoting jobs. That’s what Personal Accident & Illness cover is for. It replaces a chunk of your income while you get back on your feet.
The two do different jobs. One tides you over. The other catches you if the worst happens and work is off the table for good. Knowing you’ve got both, and knowing how to claim on the one already sitting in your super, is the difference between a stressful stretch and a hole you can’t climb out of.
Dig out your super statement this week. Check whether you’ve got TPD cover, what it’s worth, which definition applies, and whether it’s still active. Future you will be glad you did.
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