Remind me again why I need TPD insurance

We all know that the role of super funds is to help us put money away for our retirement. On top of this, most funds offer insurance benefits that cover temporary and permanent disability, illness and/or death. The three key types of insurance available through your super fund are

• income protection insurance (or salary continuance benefits, it is sometimes known): this allows an insured person who is sick or injured to make a claim for benefits that are paid each month that they are unable to work. Benefits are usually calculated on your earnings before you ceased work at a rate of around 75 to 85 percent of your ‘pre-disability’ income. Benefits are then paid until you can return to work, or until the end of the benefit period which can be two years, five years or until age 60, 65 or 70
• total and permanent disability (TPD) insurance: this allows an insured person to make a claim for a lump sum payout in the event they have an injury or illness that permanently prevents them from working in an area with their education, training or experience. A total and permanent disability can include a chronic illness or impairment, or mental illness or impairment. Remember, TPD insurance is different from workers’ compensation insurance or WorkCover – if you are unable to work because of illness or injury, it does not matter whether it occurred in the workplace or elsewhere!
• terminal illness or death cover; this allows an insured person to make a claim for a lump sum if you are terminally ill, or for your family to make the claim if you pass away.