If illness, injury, or disability has left you unable to work, you may be weighing up your financial options. These could include:
- Early Superannuation Withdrawal – Accessing your retirement funds now
- Income Protection Insurance – Temporary income support while recovering
- Total and Permanent Disability (TPD) Insurance – A one-off lump sum payment if you are permanently unable to return to work
Choosing the wrong path too soon – especially withdrawing your super – could mean missing out on larger, long-term financial support.
Accessing your super early might offer immediate relief, but it comes with long-term consequences.
- You’ve been diagnosed with a terminal illness
- You are suffering from severe financial hardship
- You’re applying on compassionate grounds
- You’ve met the criteria for permanent incapacity
However, early super withdrawals:
- Reduce your retirement savings significantly
- May affect your TPD eligibility – withdrawing super too early can void your ability to make a TPD claim
- May have tax implications
- Could impact Centrelink benefits
We strongly recommend checking your TPD insurance entitlements before accessing your super. Once withdrawn, you may no longer qualify for a lump sum TPD payout.
Income protection policies offer monthly payments, usually up to 75% of your pre-injury income, for a set period.
- Temporary inability to work due to illness or injury
- Payment durations ranging from 2 years up to retirement age
- A waiting period before payments commence
While helpful in the short term, income protection:
- Doesn’t cover permanent disability in most cases
- Stops once the benefit period ends
- Can’t match the long-term financial security of a lump sum TPD payment
If your condition will prevent you from working again, TPD insurance is usually the more appropriate option.
Total and Permanent Disability (TPD) insurance provides a one-time lump sum payment if you can no longer work due to a permanent medical condition.
- You hold TPD cover, often through your super fund
- You are permanently unable to return to your previous occupation – or any occupation, depending on the policy wording
- You provide strong medical evidence that confirms the condition is permanent
- You meet any waiting periods (usually 3–6 months)
A successful TPD claim can provide financial stability for the future – covering your medical expenses, mortgage, daily living costs, and more.
If your condition is long-term or permanent, TPD should be your first port of call – not early super.
Withdrawing your super early can:
- Void your TPD claim
- Permanently reduce or eliminate your entitlement to a lump sum payout
- Lead to irreversible financial decisions without understanding your rights
Consulting an independent financial adviser is wise, but legal advice is essential before lodging a TPD claim. These applications are technical, high-stakes, and you generally only get one chance to get it right.
Insurers deny many valid TPD claims due to technicalities, insufficient medical evidence, or delays. We work to ensure this doesn’t happen to you.
- Managing all paperwork and submitting your claim properly
- Coaching doctors to provide evidence that meets insurer requirements
- Challenging unfair denials or delays
- Pursuing maximum entitlements under your policy
- Working on a No Win, No Fee basis – so there’s no financial risk to you
Let us take the stress off your shoulders. You focus on your health – we’ll focus on your future.
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Phone: (02) 9098 4778
Email: contact@fernlawyers.com.au
Website: www.fernlawyers.com.au
Assisting clients across NSW and Australia-wide.
Disclaimer
This article contains general information only and does not constitute legal or financial advice. Your eligibility for TPD, income protection, or early super withdrawal will depend on the specific terms of your policy and personal circumstances.
Please seek professional legal and financial advice before making any decisions. For support with TPD insurance claims, contact Fern Lawyers.
