This is a type of insurance often available through a super fund which makes a lump sum payment to the super fund if you suffers an injury or illness that means you are unable to work in any pre-defined occupations. If a claim is made for TPD, you are usually classified by the super fund as permanently incapacitated and may be able to start drawing a pension from the super fund, even if you haven’t reached the normal retirement age.

The insurance is often taken out as combined Death and TPD cover. Premiums for TPD insurance are tax deductible to the super fund.