JDFP - Diversity by Design

TPD Cover inside Super

Total and Permanent Disability Insurance (TPD) is an insurance that covers you should you suffer a disability considered to be total and permanent resulting in you not being able to return to the workforce. TPD within superannuation general comes in two varieties "Any Occupation" and "Own Occupation" the difference is around what it will payout on claim for. Some of the benefits of taking out insurance through superannuation include

• More modern super platforms pass the tax credit the super funds gets back to the members super account

• In certain cases, due to applicable tax concessions, payment of premiums may be made through pre-tax income

• If the insurance is a group super plan, premiums are often less costly

• Insurance cover may be able to be obtained without a medical examination

As in the case of most investment and financial vehicles, there are certain advantages and disadvantages to taking out insurance through superannuation depending on the type and level of cover you need, the insurance provider and your financial and superannuation position. JDFP can explain the ins and outs of insurance through superannuation.


Please note, the policy issued to you through your superannuation fund is owned by the trustee of the super fund which in turn means any payouts on claims will be made directly to the super fund, and therefore you will also need to satisfy the exit requirements from superannuation, and different taxation treatment may apply.