When serious illness or injury turns life upside down, the financial consequences can be just as challenging as the physical and emotional ones. For many Australians, their most valuable protection is Total and Permanent Disability (TPD) insurance, which is often held within their superannuation.
TPD insurance pays a lump sum if you become totally and permanently disabled due to illness or injury. This money can help cover living expenses, medical and rehabilitation costs, debt repayments and provide a safety buffer for the future. While the benefit can be life-changing, making a claim is not always straightforward.
Every insurer defines “total and permanent disability” differently. Some policies are based on whether you can return to your own occupation (the work you were doing before your illness or injury), while others use the broader test of whether you can work in any occupation suited to your training, education or experience.
The paperwork is extensive, the medical evidence requirements are high, and the waiting times can stretch for months. For people already dealing with the strain of illness, it’s a process that can feel overwhelming. That’s where financial advisers play a crucial role.
“Our job is to take the stress out of the process,” explains Patrick Sutherland, Partner at Halpin Wealth.
“We liaise with super funds and insurers, gather the information they need, and keep the claim moving. It means our clients can focus on their health, not the paperwork.”
A client’s story
One of our clients who faced a cancer diagnosis shared the below.
“I really appreciate your help, and without having your support I never would have received the TPD claim from my super fund,” they said.
“There was so much information and forms that they wanted and with what I am going through at the moment I would have given up. Receiving the funds has allowed me to clear some debts and retain a cash buffer to help me through my battle with cancer and the ongoing costs of treatment.”
Stories like this are sadly not uncommon. The reassurance of financial stability can provide real relief at a time when health is the main priority.
How TPD works through super
Most Australians hold some level of TPD cover automatically through their super fund. This default cover is generally cheaper than taking out a policy directly, though it often comes with limitations. Policies may cover “any occupation” rather than “own occupation”, have exclusions for pre-existing conditions, or impose caps on the maximum benefit.
Making a claim typically involves:
- Notifying your super fund you wish to make a TPD claim.
- Providing extensive documentation, such as medical reports, employment details and financial records.
- Independent medical assessments, which may be requested by the insurer.
- Waiting periods, which can range from weeks to months depending on the case.
According to Moneysmart, super funds and insurers are required under the Life Insurance Code of Practice to update clients regularly, but in reality, delays are common.
“It’s not unusual for clients to feel lost in the process,” Patrick explains.
“Having someone in your corner who understands the requirements and knows how to respond to insurer queries can be the difference between a stalled claim and a successful outcome.”
The role of advice
While every claim is different, there are common areas that Halpin advisers help with, including:
- Interpreting the policy: understanding whether your cover is “any occupation” or “own occupation” and what that means for eligibility.
- Coordinating evidence: helping clients obtain and organise the right medical and employment documentation.
- Liaising with insurers: keeping claims moving by communicating with funds and insurance companies.
- Financial planning after payout: advising on how to use the lump sum strategically, from clearing debts to investing for future needs.
Receiving a TPD payout is often the start of a new financial journey.
“We work with clients to ensure the funds are used in a way that provides both immediate relief and long-term security. It’s about protecting their financial wellbeing through a very difficult time,” Patrick explains.
Source: MoneySmart
Get the right support and advice
Illness or injury is never part of the plan, but preparing for the unexpected is a cornerstone of financial advice. TPD insurance provides critical protection, but accessing it can be complex without the right help.
At Halpin Wealth, we’ve walked alongside many clients through this process. We know that good advice is not just about technical expertise, but about support, reassurance, and making sure clients don’t have to face these challenges alone.
If you or someone you love is navigating illness or injury and wants to understand how TPD insurance works, or whether you may be eligible for a claim, we’re here to help. Contact us today.
This information provided in this article is general advice only and has been prepared without taking into account your own objectives, financial situation or needs. Before making a financial decision based on this advice, you must consider whether it is appropriate in light of your own needs, objectives, and financial circumstances, and where relevant, obtain personal financial, taxation or legal advice. Where a financial product has been mentioned, you should obtain and read a copy of the Product Disclosure Statement (PDS) prior to making any decisions about whether to acquire a product.