I am often met with concern from clients who wish to access the insurance benefits, such as Total and Permanent Disablement (TPD), attached to their superannuation funds but are reluctant to make a claim because they fear it might jeopardise their super account.

This reluctance is understandable given that superannuation is a valuable part of our income and is designed to support us when we retire.

We don’t want anything to threaten it.

It is reassuring to note then that TPD benefits do not come out of your existing account balance. Any entitlement to a TPD benefit is payable in addition to your superannuation balance. If you are successful in accessing your TPD benefit, that amount is paid on top of your existing superannuation account balance.

For example, if you have an existing superannuation balance of $100,000 and a TPD policy valued at $150,000, the successful access to the TPD benefit would increase your superannuation account balance to $250,000.

Upon approval of your TPD application, it is your choice when it comes to dealing with the benefit. Common options include:

1. Withdrawing the TPD benefit in full;
2. Withdrawing the entire superannuation account balance in full;
3. Rolling the TPD benefit and account balance to another superannuation fund; or
4. Leaving the money in the account, allowing it to accumulate for future access.

In short, there is great flexibility when it comes to dealing with your TPD benefit. The important point to remember, though, is that making a TPD claim has no negative effect on your existing superannuation account, for which you have worked hard to accumulate.

Don’t be afraid to demand your rights and entitlements. A lawyer who is expert in superannuation and TPD claims can help you do this.