What Qualifies as Total and Permanent Disability?

In Australia, any permanent injury or illness that prevents you from working again can qualify as a Total and Permanent Disability (TPD). Moreover, it doesn't matter how you acquired your medical condition to have a successful TPD claim and get a lump sum payment.
Total and permanent disability meaning

Getting sick or injured is not fun, but knowing that you can claim a lump sum payout for your medical and rehabilitation bills can be a relief. A total permanent disability (TPD) can give you access to this sum if you have an insurance policy and you qualify.

You might have heard “TPD” from a lawyer or superannuation fund insurer when you became ill or injured and wondered: “What does total and permanent disability mean?”.

In this article, we will answer all your questions about the definition of total permanent disability in Australia. If you qualify for a TPD insurance claim, speak with Aussie Injury Lawyers to get the TPD payout you deserve. It’s free to know if you can claim and the estimated value of your lump sum payment. Call: 1300 873 252

What is Total and Permanent Disability?

A total and permanent disability is any injury or illness that makes it impossible or difficult for you to do your job. Anything that makes you unable to work in your own occupation or one you are qualified for by training, experience, or education falls under this category.

As you can imagine, a permanent illness or injury is generally serious, as it can restrict your ability to pay for living expenses.

Do I Have Permanent Disability TPD Insurance?

Most working Australians have TPD insurance as part of their life cover, often through a super fund. Many people are unaware they have TPD cover included when they open a superannuation account, and some have multiple insurance policies.

Thankfully, this insurance provides financial security for you and your family. When you have a successful TPD claim, it pays a TPD insurance benefit that pays for your medical expenses and rehabilitation costs.

Although insurance policies differ in their definitions of total and permanent disability, there is still a general understanding of what qualifies as a Total and Permanent Disablement.

An injured man in a wheelchair questioning what qualifies as total and permanent disability

What Qualifies as a Total and Permanent Disability?

Total permanent disability insurance pays out when you become totally and permanently disabled due to an injury or illness and can’t work. So, while losing your toe or finger is a severe accident, it may not qualify you for a TPD insurance claim, depending on your occupation.

Each insurer has a different definition of TPD, so check your insurer’s Product Disclosure Statement (PDS) to see what they define as a permanent disability. However, there are two main categories: an own occupation policy and any occupation.

Own Occupation Policies

You can successfully claim against an own occupation TPD policy when you can’t work again in your usual occupation. For this type of TPD insurance policy, you could later return to work in a different industry suited to your disability.

Any Occupation Policy

When you are unable to work in any job for which you are qualified by your education, training, or experience, and any occupation provides a lump sum payout.

Successful TPD claim icon

Can I Make a TPD Insurance Claim?

For free, Aussie Injury Lawyers will:

  • Investigate your TPD insurance cover
  • Advise if you qualify for a TPD claim
  • Tell you the value of your TPD benefits

Our experienced insurance lawyers have a 99% success rate for claiming insurance benefits and can help you have a successful outcome. Get started by calling 1800 873 252

Types of Total and Permanent Disability

Total and permanent disability can take many forms, affecting people in different ways.

What kinds of physical disability qualify for a TPD claim?

Physical disabilities often qualify for a TPD claim because they impact someone’s physical capacity to perform daily tasks or work. Examples include:


• Spinal cord injuries
• Amputations
• Severe burns
• Neurological disorders such as multiple sclerosis or Parkinson’s disease
• Chronic illnesses like cancer or heart disease

What kinds of mental health conditions qualify for TPD Claims?

Mental health disabilities are recognised psychological disorders that impact someone’s mental well-being, making it challenging for them to cope with daily life or work. Examples of mental illnesses include:


• Severe depression
• Anxiety disorders
• Post-traumatic stress disorder (PTSD)
• Schizophrenia
• Bipolar disorder

More about psychological injury TPD claims >

Cognitive disabilities that qualify as a Total Permanent Disability

Cognitive disabilities qualify for TPD claims because they make it difficult for people to process information, learn, or remember. Examples include:


• Traumatic brain injuries
• Stroke or cerebral vasculature disorders
• Neurodegenerative diseases such as Alzheimer’s or dementia
• Learning disabilities like dyslexia or ADHD

Common Causes of Total and Permanent Disability

You can become totally and permanently disabled from many different types of accidents and illnesses, but work-related injuries are a common cause.

Work-Related Injuries

Work-related injuries are a common cause of total and permanent disability. These injuries often occur due to:

  • Accidents at work
  • Serious slips, trips and falls
  • Exposure to hazardous materials or environments
  • Poor workplace safety or ergonomics

Examples of work-related injuries that can lead to total and permanent disability include:

  • Back injuries or spinal cord damage
  • Head or brain injuries
  • Amputations or severe limb damage
  • Chronic illnesses like mesothelioma or asbestosis

If you have a permanent injury or illness, regardless of how it occurred, a TPD insurance claim helps cover medical and rehabilitation costs, giving you financial security during recovery. Whether by claiming against TPD cover in a life insurance policy or other means, having the right coverage can make a significant difference in managing the financial impact of a permanent disability.

How Much Does TPD Insurance Cost?

Several factors influence the cost of TPD insurance, including age, occupation, gender, and how much cover you need to pay daily living costs. Generally, buying TPD insurance through a super fund is cheaper, as it includes group coverage when you open a new account.

Stepped or Level Premiums

To calculate how much TPD cover you need, you should understand the gap between what you have and what you will need in the case of a total permanent disability. Then, the cost of TPD insurance premiums changes based on whether you choose stepped or level premiums.

The cost of stepped premiums increases annually based on your age, while level premiums remain the same.

How Much TPD Cover Do I Need?

When deciding how much cover you need in TPD insurance, you should first check:

  1. Where to buy TPD insurance as a standalone policy
  2. Whether you are already covered through existing superannuation policies.

The lump sum payout from permanent disability insurance covers many aspects of your life including:

Medical treatment costs

A successful TPD insurance payout should cover all your medical expenses.

Your living expenses

You might be unable to pay for housing for you and your family when you can’t work. A TPD benefit should cover your daily living expenses so you can afford to stay in your home.

Debt repayments on a mortgage or credit card

If the income from your job enables you to pay off debts, a TPD insurance benefit will cover those debts for the period you are unable to work.

Boost your retirement savings

You can also have some money left from your lump sum payment to fund your retirement.

Lump sum payment icon

How Much is a Lump Sum Payment?

In Australia, a TPD lump payment ranges between $50,000 and $500,000, depending on the value of your TPD coverage. However, some people can receive much more because they can claim TPD against multiple TPD policies.

Claiming a TPD Benefit with a TPD Lawyer 

When you need to make a TPD claim due to a permanent illness or injury, an experienced TPD claim lawyer will significantly increase your chance of success. Disability insurance companies will look for any reason to deny your insurance benefits, so you need a well-prepared case and compelling medical evidence.

Our insurance claim specialists provide the best legal representation at Aussie Injury Lawyers. Furthermore, our 100% no-win, no-fee policy allows you to use our legal services without paying until we win your claim. Call now for your free claim investigation: 1300 873 252

Share:

Facebook
LinkedIn
Twitter

Other Legal News