Total Permanent Disability Cover Q&A
The following questions are to be used as a reference guide only and do not substitute or replace your insurance contract, the PDS or Certificate of Insurance.
- What is TPD Insurance?
- Is a TPD payout taxable?
- Should I have my Total & Permanent Disability insurance inside or outside super?
- I already have life insurance. Do I need TPD cover too?
- Can you claim TPD insurance on tax?
What is TPD insurance?
Total & Permanent Disability Insurance (TPD) provides a payout to you in the event that you become permanently disabled and can no longer work in any occupation. The maximum age you can apply for cover is 59, and cover can remain in place until the policy anniversary following your 65th birthday.
Is a TPD payout taxable?
A TPD benefit payout is generally not taxed. However, it's always best to check with a tax professional.
Should I have my Total & Permanent Disability insurance inside or outside super?
Most super funds offer life insurance, but with generally only a minimum level of cover in the event of death or TPD. You should ensure this cover will be enough for your needs, should you need to claim.
I already have life insurance. Do I need TPD cover too?
Life insurance provides a lump-sum payout if you die or are diagnosed with a terminal illness. TPD provides a lump-sum payment if you can’t work because you are totally and permanently disabled.
Can you claim TPD insurance on tax?
No, TPD and life insurance is not tax deductible.