How much is a TPD insurance payout?

A majority of Australians may have or had various TPD insurance policies throughout their working life as they joined numerous superannuation funds when they have changed jobs.

Helping you to understand your TPD policy and clauses

A TPD benefit is a lump sum insurance benefit for people who are sick or injured and unable to work. The amount you will be paid is calculated in a number of different ways. It varies from one person to another, and this can be influenced by several factors including what you selected at the commencement of your policy, your age, nature of employment and your smoking and alcohol consumption. TPD amounts can vary from $20,000 to a few million dollars.

Payout figures of $150,000 to $200,000 are not uncommon. Once you receive your payout sum, you can use this to assist with adjusting your living setup if you are still incapacitated, or you could simply choose to pay it off your mortgage. It’s completely your choice.

If your TPD benefit is available to you through your superannuation fund, you may not even know you had the cover! This is because in many cases, superannuation-based insurance cover is automatically offered by your superannuation fund under a policy of “group insurance.” Group insurance policies cover many members at once.

The superannuation fund and insurer often provide you with an amount of cover which varies according to your age. This is what we call “age-based cover.”

Alternatively, you may have filled out a particular amount when you took out the insurance with your super fund, or through a financial advisor.

The benefit which you can claim will be that particular amount. The cover amount which you can claim may go down as you get older, may increase along with the Consumer Price Index (CPI) or it may simply stay at the same level. If you want the amount of your cover to remain the same each year (ie, not reduce as you get older) you can contact your super fund and instruct them to fix the amount. This may mean you’ll pay higher premiums each year

If you want to change your insurance cover, your super fund may ask you some questions about your health and type of work before actioning to your request.

Remember you can claim across multiple policies, and even old or inactive accounts

No matter how little or significant your benefit amount is, at TPIL Lawyers we will expertly investigate your entitlements and provide advice following a review of your individual circumstances, all at no charge to you.

Contact our TPD lawyers for help today

Our TPD experts can provide support and helpful experience when you need it most. Contact us on 1800 958 498 or try our free TPD claim checker below.

Menu

How much is a TPD insurance payout?

Helping you to understand your TPD policy and clauses

Contact our TPD lawyers for help today

TPIL Lawyers Brisbane

TPIL Lawyers Gold Coast

Angela

Lawyer

Allison

Paralegal

James

Senior Lawyer (L.L.B, BAppSc)