When it comes to insurance it’s important to understand that strict rules apply to insured TPD payments. To receive an insurance benefit payment you’ll need to satisfy the eligibility criteria and the TPD definition in the insurance policy.
There are two aspects to a TPD claim you need to know of. These are:
- whether you meet the ‘permanent incapacity’ condition of release under superannuation law to access your super account balance
- whether you have TPD insurance in your super account and if you meet the conditions that apply.
Your ability to meet certain definitions at the start of the policy (such as, ‘active employment’) could affect your eligibility to claim so it’s worth taking the time to read and understand the terms of your policy. These are set out in our Important conditions and the Insurance definitions section of the Insurance Guide.
These types of benefits and their tax treatments can be complicated depending on your circumstances so you might want to speak to your financial and/or tax adviser. To understand these types of payments ad their implications in more detail, you can visit ato.gov.au.