Loredana Trimboli, Superannuation & Life Insurance Practice at Gordon Legal
As nurses and midwives, you dedicate your careers to supporting others through illness, injury and life’s most challenging moments. But what happens when the tables turn – when your own health may prevent you from continuing the work that you’re trained to do?
For many ANMF members, the answer may lie in a form of insurance that is built into your superannuation – that is, Total and Permanent Disability (TPD) insurance.
What is TPD insurance?
TPD insurance is a lump sum insurance benefit paid to individuals who can no longer work due to illness or injury. Most superannuation funds include this insurance by default – although the level of cover (and whether it exists at all) can vary significantly depending on which superannuation fund you’re with, your employment status and your age.
A TPD claim can be made regardless of how your condition arose, whether through a workplace injury or something entirely unrelated to your job. For example, you may be eligible to make a TPD claim if you are unable to work due to:
- a work-related injury
- a transport accident
- a physical injury or psychological condition
- an occupational disease
- a serious illness such as cancer, stroke or heart attack
- a chronic or degenerative condition like fibromyalgia, multiple sclerosis, motor neurone disease, or an autoimmune disease.
To be successful in a TPD claim, you need to show that because of your condition, you are unlikely to return to work in any role that fits your education, training or experience. This doesn’t mean you must be incapable of any work – just that you can’t return to the work you’re skilled or qualified for.
For example, a registered nurse with a lower back injury may no longer be physically capable of safely lifting patients or standing for long shifts. Even if she could theoretically perform an administrative job, that may fall outside her training and experience. In that instance, she may still be eligible for a TPD benefit.
Many super funds have a standard definition of TPD similar to this:
‘As a result of illness or injury, the member has been absent from all employment for six consecutive months and is determined by the insurer to be permanently incapacitated to such an extent as to render them unlikely to ever work in any occupation they are suited to by education, training or experience.’
When assessing a claim, insurers are required to take a holistic approach. They must consider:
- your physical and mental health condition,
- the realistic likelihood of returning to work (not just theoretical possibilities); and
- your prospects of employment in the open labour market given your condition and absence from the workforce.
Importantly, you do not need to have a WorkCover, TAC or Centrelink claim to be eligible to claim TPD benefits. These are entirely separate systems.
How much could you receive in compensation?
TPD benefits are paid as a one-off lump sum, which can range from tens to hundreds of thousands of dollars depending on your policy. The amount you receive is based on several factors:
- your super fund and level of cover
- the specific terms of your insurance policy
- the date you became unable to work, known as your Date of Disablement.
This date is critical, as your TPD insurance entitlement is usually based on the insurance attached to your super at that time. For example, if you stopped working in January 2020 due to illness or injury, the relevant insurance cover is what you had in the financial year ending June 2020, not your most recent annual statement.
Some policies also include waiting periods, usually between three to six months of continuous absence from work, before a claim can be formally lodged. It’s also important that your treating doctors consider your condition stable and permanent.
Why nurses and midwives are especially vulnerable
Health workers are exposed to an increased risk of physical and psychological injury due to the demands of the job. Long hours, shift work, manual handling, and exposure to traumatic events often come with the territory. Yet many nurses and midwives aren’t aware that their superannuation could contain insurance that protects them in the event they can’t keep doing the job they’ve trained for.
Even more concerning is that some workers only discover too late that their TPD cover was quietly cancelled, often due to super fund inactivity, job changes or automatic policy alterations. In fact, some super funds tailored for healthcare workers don’t include default TPD cover at all, offering only income protection. For this reason, it is important to check your superannuation and ensure you’re covered.
Don’t assume you’re covered
Recent superannuation reforms mean that many Australians under 25 or with low account balances no longer receive default insurance. Additionally, if no contributions have been made for 16 months or more, your cover may lapse. To protect yourself, take these steps:
- Log into your super account or contact your fund directly.
- Ask whether you have TPD insurance, and if so, what your level of cover is.
- Find out the waiting periods, definitions, and any exclusions that may apply.
- Consider how your coverage may change if you switch jobs, reduce hours, take parental leave, or work part-time.
If you’re unsure how to interpret your policy or whether you may be eligible to make a claim, we strongly encourage you to seek advice. At Gordon Legal, we offer free initial consultations and operate on a ‘no win, no fee’ basis.
You deserve to be protected
You’ve spent years building a career in nursing or midwifery, and it’s a career that makes a difference. But if illness or injury stops you from doing that work, you deserve the financial security and peace of mind that comes with knowing your insurance will support you.
TPD insurance is one of the most overlooked safety nets available to health workers, and in many cases, it’s already sitting there in your super fund. Don’t wait until it’s too late. If you or someone you know can no longer work due to injury or illness, contact Gordon Legal via ANMF member assistance for advice. You don’t need to face the process alone – you’ve spent your life caring for others; it’s time someone cared for you.
