What are the differences between income protection and TPD claims?

Published 21 Jul 2015

Many people often require financial assistance when they are forced to take a long time off work due to an injury or illness. In these circumstances, help can be provided through your insurance cover or superannuation.

Income protection and total and permanent disability (TPD) support are two inclusions that may appear on your policy. While they’re both designed to give a much-needed financial safety net when you’re away from the workplace, they do so in very different ways.

This article will examine the differences between the two forms of superannuation claim, as well as provide advice on which one may be best suited to your circumstances.

Income protection

An income protection policy pays you a steady income stream during your time off work. You are normally restricted to 75 per cent of your gross salary and payments are typically offered monthly.

You do not receive a lump sum and the payments often have a maximum upper limit of $250,000. Therefore, you may begin to run into financial difficulties if your illness or injury is over a long period of time.

Nevertheless income protection offers regular payments that you can use to continue providing for your family when times are hard. Every policy is different so always make sure to check the specific eligibility criteria when making a claim.

TPD claims

Are you unable to return to the workplace altogether? You may be able to pursue a total & permanent disability compensation claim. Unlike income protection, TPD’s are a lump sum payment that covers a range of economic and non-economic losses you experience due to a disability.

Both physical and mental conditions can be considered a disability, however your illness or injury must exceed a certain threshold and be consistent over a certain time period. In fact there will be various requirements you need to meet before a court rules you have a case.

While income protection has an upper limit and only pays 75 per cent of your gross salary, A TPD claim is only restricted by your earning potential at the time of the incident.

If you’re not sure whether you’re eligible for benefits under a superannuation policy, please contact our experienced superannuation lawyers to discuss your case. A no-win, no-fee cost agreement will ensure you have the best opportunity at success in your claim without putting yourself at unnecessary financial risk.

Call our superannuation lawyers today for a free consultation.

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